Prospects of worldwide hike in gold prices: World Gold Council

COMMODITIES-GOLD-METALS-PRICE-SRILANKAA report published by World Gold Council few days back states investments in Gold as commodity on international level are soaring. It declares gold as the best investment option. Gold prices have soared by almost 20% in last few months as stated in WGC’s report. Analysts estimate prices may remain stable in the future. US analyst Anthem Blanchard has forecasted prices of gold may soar up to $1500 per ounce.

Currently gold is priced more than $1250 on international bullion markets. Recently it came to light that leading US investor George Soros had invested more than $39 million in precious metal.

Since the beginning of year 2016 it is observed that prices of gold are gradually soaring. Important economies like China and Russia are increasing their gold stock as security against currency fluctuations in international markets. On this backdrop investors have started investing in gold. It is that estimated prices that may not decline below $1250 per ounce rather it may soar up to $1500 per ounce. Investments in Gold by hedge funds have become crucial factor in this situation. 

Anthem Blanchard estimated that the prices of gold may increase on background of Fed’s policy. Along with leading analysts leading financial advisories and bankers like UBS have estimated that prices of gold may soar up to $1350 per ounce by the end of the current year. Goldman Sachs, one of the largest investment bankers has estimated 10-15% returns on investment in gold for the current year.

Kenneth Rogoff, former chief of IMF (International Monetary Fund) has advised the developing and emerging economies to increase their gold stocks. In this backdrop it was disclosed that the leading investor George Soros invested more than $39 million in gold commodity. Soros Fund Management had taken major stakes in Barrick Gold, Canada and SPDR Gold Trust. Along with Soros fund management other leading fund managers like Stanley Druckenmiller, Jana Partners and CI Investment Inc. have also hiked their stakes in Gold as disclosed by media. 

ICBC Standard Bank, one of the topmost banks in China has bought a gold vault in London’s Barclays Bank, holding a massive stock of 2000 metric tons of gold. The gold vault situated in London has a huge capacity of holding gold worth 80 billion dollars. China aspires to strengthen its position to become one of largest holders of the precious metal.

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