Gold investment 'to remain popular'

Gold is likely to remain a popular alternative investment choice over the short term, according to one group of analysts.

Experts at Macquarie Group, led by Jim Lennon, were quoted by Bloomberg as saying that, providing the outlook for interest rates in the US remains unchanged in the near-term, the precious metal ’should continue to attract investors’ due to the current low cost of ownership.

’Gold represents insurance against an inflationary outcome,’ the analysts added.

The value of bullion has risen by 28 per cent so far this year and its price was largely unchanged during morning trading in Asia today (December 15th), being valued at $1,124.90 (£691.34) an ounce at 14:15 local time in Singapore.

However, one expert, Zhang Dajiang of Pioneer Metals Group, warned that if the dollar stays resilient, there could be ’some weakness’ in gold prices.

In November, Royal Mint figures showed that the production of gold coins had more than quadrupled in recent months, in order to match demand for the metal.ADNFCR-2318-ID-19513804-ADNFCR