The Gold Report
Investment in gold and gold-related funds is drawing greater attention from domestic investors as gold prices are expected to gain further on a lack of global supply and generally weak dollar, analysts said.
Usually, the value of the dollar and the price of gold have gone hand in hand in an inverse relationship. After steep gains Monday, the gold price corrected in line with a rebound in the value of the dollar. The gold price fell back into the high $720s Tuesday after reaching a 28-year high of $747 Monday on New York and London bullion markets. It compares with around $640 in mid-August.
But analysts said that the gold price, after short-term correction, is likely to resume its upward path as further dollar declines will likely take place on the weakening U.S. economy.
"Gold will remain as an attractive commodity for investment as demand is growing from the fast rising economies in India and China with the year-end gift season approaching," said Song Jae-hyeok, an economist of SK Securities. Investors worldwide have been seeking gold as an alternative investment. Gold is considered as, and historically proven to be, a "safer" investment asset compared with equities and housing, he said.
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Will Gold Investment Glitter?
Source: koreatimes.com (10/3/07)
Investors worldwide have been seeking gold as an alternative investment. Gold is considered as, and historically proven to be, a "safer" investment asset compared with equities and housing, said Song Jae-hyeok, an economist of SK Securities.
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