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Monday 20.05.2019 | Name days: Venta, Salvis, Selva

Goldinvest Asset Management: gold price «bubble» is a myth

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUSince early 2011, gold price is up over 35%. Moreover, growing sovereign debts and central banks’ nearly zero interest rates keep boosting demand for gold. Consequently, gold price is expected to hit 2 000 dollars per ounce in the first half of 2012, according to Goldinvest Asset Management (GAM) report.

GAM has concluded that in a short-tem the major hedge funds will be forced to sell some of their gold to cover for losses posted on stock markets, This can drag the gold price down to 1 500 – 1 600 dollars, However, in a long run, trend of gold price gains is expected to linger and hit 2 000 per ounce in early 2012.

According to GAM, there is no such thing as gold price “bubble”, so one should not fear it could burst.

“Gold prices are overheating indeed. They are gaining too rapidly and the fuss around them conceals the real value of gold. Prices can clearly fluctuate considerably exactly because of these uncertain conditions,” says Peteris Avotins, GAM Board Chairman.

“There will come a moment when gold invetsments will no longer bear fruit. The time has not yet come, because there are no alternative ways of invetsments. But when the moment comes, gold will take up an adequate proportion in investors’ portfolio – 10-20%. Now gold can make up as much as 100% of it,” he says.


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