Gold price to hit us$1,800 an ounce within a year, says AmInvestment Bank Group
Posted on October 11, 2012, Thursday
HIGH VALUE: Gold price per ounce is expected to touch US$1,800 within the next one year and above US$2,000 over the next two years, driven by higher demand, low interest rate and central bank gold-buying says AmInvestment.
KUALA LUMPUR: Gold price per ounce is expected to touch US$1,800 within the next one year and above US$2,000 over the next two years, driven by higher demand, low interest rate and central bank gold-buying, AmInvestment Bank Group (AmInvestment) said yesterday.
Funds Management Division, retail funds director Ng Chze How said people were now branching into other investment opportunities, with gold and properties as the current top choices.
“Furthermore, the US improving economy has resulted in greater buying power in China, India and the Middle East, the biggest consumers in the gold equity market.
“So, there is a lot of demand,” he told a media briefing.
The DWS Investments GmbH, portfolio manager vice-president, Manuel Tenekedshijew, said gold price would appreciate further to US$2,000 an ounce in the next six months and to US$2,500 an ounce in over a year.
He said gold mining stocks have outperformed physical gold throughout the last decade, with jewellery still dominating demand side of gold, while investments in gold accounted for about 25 per cent of the total demand.
“Additional important drivers for gold demand are electronics and dental industries,” added Tenekedshijew, who also attended the media briefing.
AmInvestment’s precious metals fund, AmPrecious Metals, have been receiving overwhelming interests from investors since its inception in 2007.
Ng said the group had increased the fund size as a result of the demand from RM300 million last year to RM500.76 million this year.
In the second quarter of this year, central bank gold buying hit a record of 157.5 tonnes, more than double the level in the same period last year, and accounted for 16 per cent of the global demand. — Bernama
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