Additionally, China’s demand for gold will increase due to the high levels of savings and restrictions on other investments.
“There is a huge groundswell of people becoming wealthier, that have more money to spend on jewellery and more savings to invest,” Alistair Hewitt, WGC market intelligence manager, said in the article. “For many people, gold is the preferred form for savings amid volatile stock markets, overvalued property and low interest rates being offered by banks.”
COMEX gold futures are now trading a little over $1,300 per ounce.
There are a few ways for investors to track gold prices through physically backed ETFs. The SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) are backed by gold bullion stored in vaults. The ETFs have all gained a little over 10% year-to-date. [Gold ETFs Could Surprise With Big Rally]
SPDR Gold Shares
For more information on gold, visit our gold category.
Tom Lydon’s client own shares of GLD.