Trusting in Gold - Austria's Erste Bank Gold Report

9 July 2009  Mineweb

Austria's Erste Bank's latest Special report on Gold still rates the yellow metal positively as an investment. A minimally edited version of the introduction to this report is published below.

Since Erste Bank's first Special report on Gold in 2007 when the gold price was USD 650, gold has outperformed almost every other asset class. The gold bull market has been running with an annual performance of 16% since 2001. Gold closed the year 2008 with the eighth annual increase in a row. And in the year to date, the performance has been outstanding as well: the gold price has recorded an increase of 7% (in USD) and 8% (in EUR), respectively. The average price in 2008 was USD 872/ounce, i.e. 25% higher than in 2007 (USD 695). 

But have we missed the gold rush? It is a legitimate question to ask whether we are facing an imminent trend reversal or if the recent correction was nothing but a "little breather" ahead of the next massive upward swing. What could be a potential catalyst to the continuation of the gold rush? What are the risks? I We believe that the gold sector still offers a "shiny outlook" for existing and potential investors.

http://www.mineweb.net/mineweb/view/mineweb/en/page33?oid=85867&sn=Detail