A senior figure at OmniSans Research said on May 20 that Gold Investment is prudent as the yellow metal will go "much, much higher" this year.
Paul Learton, chief investment strategist at the independent firm, attempts to draw a number of parallels between gold's bull market in the 1970s and the current one, which started in 2001. He notes that gold increased by 471 percent between mid-1971 and December 1974, fell by 50 percent over an 18-month period and then exploded from August 1976 to January 1980.
Similarly, a high point of $1,033 per ounce was reached last March in the current bull run, with Gold Prices subsequently dropping by 30 percent at one stage to about $700 per ounce. "If this bull market parallels the last one, then gold should renew its upward momentum in a very serious way starting in October 2009," he wrote on SeekingAlpha.com. "And this next leg up should be a major one (the biggest gains came during the second rally in gold's bull market in the '70s). However, judging from the Fed's money printing, the next leg up may come even earlier."
Leon Westgate from Standard Bank, the largest bank in Africa, also claimed last week that prices should rise in the coming months as a result of a falling dollar, which tends to move in the opposite direction to gold. "We expect the dollar to depreciate to $1.50 by year-end. As a result, the gold price should rise," he told Bloomberg.
