Gold Investment TV Interview

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Wonder where the price of gold is going? Watch this short TV Interview to find out how high the price of gold will go!

VIDEO TRANSCRIPT
GOLD INVESTMENT TV INTERVIEW

It has soared to record highs on news that Indias Central Bank has bought 200 tons of it from the International Monetary Fund. The 6.7 billion dollar purchase over the last 2 weeks of October surprised the markets.

It was the biggest single central bank purchase over such a short period in the last 30 years. The price of gold jumped by more than US$30 to an all time high of $1,087 an ounce. The country has until now has been the biggest consumer of the precious metal, primarily because of its deep seated affection for jewelry and gold ornaments. Experts say Indias interest in diversifying into bullion is a sign that golds run has only just begun.

For a while there had been a sort of a philosophy that gold no longer was relevant in a modern society, but with all the printing of money that is going on around the world gold has become the ultimate safe haven and has become the safe asset of choice, not only by individuals but by central banks.

The change of attitude appears to be due to a shift in strategy by investors to hedge against a weaker dollar and the threat of inflation. It also heightens speculation that there may be more official purchases.

The Chinese we know are very worried about holding so much US denominated debt and cash. Youve got the Middle East petro dollars that need to be recycled into a store of wealth that they can rely upon. Therell be no shortage of takers.

The IMF plans to sell about 400 metric tons of gold this year in an effort to shore up its finances and increase lending to developing countries. Indias purchase represents about half of that amount. The question now is who will buy the rest of the IMF gold.

Neena Mairata, World News, Australia.

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