| Gold Still Considered Best Investment |
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| Monday, 11 July 2011 00:00 | |||||||
Page 1 of 2 Gold Still Considered Best InvestmentJakarta - Gold is still considered the best place for investment. In the midst of economic conditions that still covered the uncertainty, gold is still capable of yielding investments of up to 13% in the last 3 years. International gold prices are believed to penetrate the level of U.S. $ 2,100 per ounce in 2014. Chief Investment Strategist, Standard Chartered Bank, said Steve Brice, gold is still a favorite investment in the bank and is the most attractive commodity for the long term. He saw the gold outlook still 'bullish'. One reason for the bright outlook for gold is related to stronger economic growth in China and India, thereby increasing revenues within the next few years, which in turn boosted demand for gold. In addition, increased levels of debt and concerns about sustainable economic recovery in Western countries have reduced the sensitivity of banks to inflation. Gold typically remains good on the environment of negative real interest rates. "Historically, gold is still performing well during periods of negative U.S. real yields fell and gold when real interest rates positive environment. We expect the Federal Reserve will raise interest rates in the third quarter of next year," Brice said as quoted by The Star, Monday (07/11/2011). Another reason for the rise in gold prices is the attitude of the Central Bank in Asia are increasingly like the gold and the transition from the World Bank-Central Bank which is the source of gold supply nett into a situation where they increase its gold reserves. "During my work, the Central Bank has always been a nett gold supply, but we see later, they moved into nett buyers last year," he said. Finally, the gold supply will likely be retained in short-term investments despite the activity started to increase. For the second semester of 2011, Brice said the stock market will produce a normal returun between 18% to 30% pertahainan, while traditional assets such as cash and marketable securities yields will grow fewer. In trading Friday (08/07/2011), price of gold in the spot market rose to the level of U.S. $ 1,545.30 an ounce, its highest in two weeks, before it finally closed pepper level of U.S. $ 1,543 per ounce. The price of gold scored the biggest weekly gain since November 2009. The surge in gold prices last week triggered by U.S. employment data are disappointing, giving rise to new concerns about U.S. economic health. Throughout last week, gold prices get a boost when the Central Bank of China and the European Central Bank raised their interest rates to dampen the potential surge in inflation. (Qom / Qom)
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