subject: sunworldwide- Worldwide Economics (gold Hits Record 756/oz)... [print this page] British-based clients of investment advisory firm, SunWorldwide, who heeded the firms advice to acquire gold more than a year ago, have seen the value of their investment rise significantly as the precious metal has continued to be the subject of increased buying by both institutional and retail investors keen to avail themselves of its wealth preservation properties.
A source close to SunWorldwide said that, had a UK investor purchased an ounce of gold at the beginning of the credit crunch in 2007, it would have cost 360. At current prices - less than 3 years later - that same ounce now costs 756 which represents a 100% increase.
The source added that the price of gold in sterling was likely to rise as the currency faces further trials on the foreign exchange markets linked to expectations that, whichever party wins the May 6 general election, the country is set to borrow billions of pounds to pay for public spending programs, stimulus packages and the bailout of its financial system.
SunWorldwide analysts remarked that investors should ignore what is seen as an element of currency risk given the fact that gold is priced in dollars since the greenback is likely to follow the example set by both the euro and sterling by falling against the yellow metal.
The consensus among the SunWorldwide analysts is that gold will end the year trading at over 800 per ounce but they believe that there will be pullbacks in the price along the way.
