Tuesday, 2 August 2011
Performance is projected gold prices continued to surge
Projected INVESTMENT in gold and will return up to 24 percent per annum during the next three years the price of precious metals is expected to reach U.S. $ 2.100 seauns by 2014.
Head of Investment Strategy Standard Chartered Bank (StanChart), Steve Brice, said demand for gold would continue to grow, especially from China and India due to rising disposable incomes in both countries.
He said the global economic situation uncertain because of the debt problem in the United States (U.S.) and European central banks continued to promote the worldwide increase their gold reserves. "We are confident with the performance of gold prices is expected to increase further due to demand as investors see commodities as an investment hedge, "he said at a media briefing on the expected investment second half in Kuala Lumpur yesterday. Brice said he expects the gold price could reach U.S. $ 1.650 seauns by the end of this year. The interest rate environment is negative in the U.S. also lead to increased demand for gold because normally it is very high when real interest rates are negative, he said. "During the period December 2007 to the present, gold recorded an income accumulated by 43 percent," he said. The price of gold continued trading firm reached U.S. $ 1,632.30 seauns Friday economic data are weak in the U.S.. However, prices fell 0.7 percent to U.S. $ 1,615.19 during the trading session yesterday following the approval leaders congress the U.S. to increase the limit of debt and reduce government spending to prevent the potential failure to pay debts. In addition to gold, Brice said the investment the equity market also expected to give good returns in the next 12 months. He said, despite uncertainty in world markets, equity markets are performing better than other asset classes. "In the first half of this year, equity markets are able to record an upward trend although there some bad news in the market as the debt crisis in Europe and the U.S., earthquakes in Japan as well as the political crisis in the Middle East. "This means that there is liquidity in the world's financial markets that encourage investment," he added. He said the equity market in China , Korea, Taiwan and Japan is expected to attract foreign investors as its share price is very cheap and offer attractive returns compared with other stock markets.