Demonstrating a double-digit growth in 2012, gold’s year over year increase remains a strong value for investors, The Economic Times reported. The precious metal is 12 percent above its position at this time in 2011. The global instability and doubt that help drive that price have only increased.
"Dips in gold should be used to buy,” added Priti Gupta, executive director of commodities& currencies at Anand Rathi Financial Services, an investment advisory firm.
The article chided small investors for high expectations and cited investment experts who don’t place an emotional stake on the precious metal. These experts remain optimistic, and strongly back gold as a critical asset class.
“The disappointing outlook of many developed economies, together with the ongoing political uncertainty, may keep investor sentiment cautious in the next few months, if not years,” said Jignesh Shah, executive director of wealth management firm Sarasin-Alpen. “Investments in material assets, like gold, are still in demand,"
Investor cited the monetary policies of central banks, and their expected long-term impact on gold prices.
“The U.S and other developed economies in Europe are running high deficits and high debts,” said a fund manager of commodities at Quantum AMC. “These economies are in recession and central bankers have opted to resort to printing money to tackle both the deteriorating fiscal situation and slowdown in growth.”
"The increase in money supply has led to debasement of currencies, which causes inflation. Hence, in the long term, gold should do well," he added.
Many experts believe that the practice of making money so readily available will continue to send gold upwards in 2013 over current year end pricing.
"Ultra-accommodative policy stance in the U.S. and the possibility of stimulus being introduced in China and the Eurozone should benefit gold," said Gupta.