What is going to happen to gold prices?

For quite some time (since late 2007) we have been advising our clients to buy gold, and  not many have listened! Today gold is once again trading above $900 per ounce, the current spot price is c. $913 per troy oz. Some commentators are now taking the view that gold will surpass the $1,000 mark per once and for all and remain in a secular bull market, this is contrary to many who felt gold was a ‘bubble asset’ up until recently.

Is gold in a bubble? Strictly speaking the price has risen enough to have bubble characteristics, and despite any bull arguments given for the upward trend one truth remains, ‘trees don’t grow to the sky’. Having said that, there are events in the world economy that challenge the bearish view against gold. For a start, gold is not the only noble metal witnessing gains, silver, platinum and palladium are trading strong as well, investors are finding physical supply difficult to come by and some countries such as Vietnam …

Read More