Gold prices are already at record levels of $1,600 per ounce
as more and more investors and fund managers opt for these kinds of alternative
assets in an attempt to find safe havens for their cash. With US debt concerns
reaching fever-pitch and Eurozone countries requiring a fresh round of
bailouts, traditional investments seem like a more risky option.
AAA’s analysis partner, Anthony Johnson, said, “Everyone from individuals with
a few hundred pounds to invest, to some of the world’s largest central banks,
are investing in gold.
“Traditional assets like equities are a higher risk strategy than they used to
be and investors are keen to diversify their portfolios with some alternatives
that will not be as responsive should the economic crisis worsen."
AAA is keen to encourage investment in emerging markets and particularly in
ethical and sustainable projects such as the forestry plantations run by firms
like Greenwood Management in Brazil. “Emerging markets are offering true growth
potential for investors and are proving far more attractive as concerns about
sovereign debt levels worsen in the US and Europe," added Johnson.
Heath Jansen a Citigroup analyst said, “When investors are hungry for gold, the
metal has a habit of rising exponentially which has no parallel amongst
metals.”
He added that gold prices could spike in the short term but that long-term
price increases are less likely: “A short-term large spike in gold is still
possible in our view. We would now rate that probability as above 25 per cent,
up from below 5 per cent just weeks ago, and growing.”
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
