Do presently depressed commodity prices present opportunity in precious metals?
*Financial Times, by Chris Flood, October 11, 2006
“The weakness in oil prices kept gold and other precious metals under pressure. Gold traded at $572.80 a troy ounce from New York’s late quote of $573.70 a troy ounce.
A gold exchange traded fund was launched on the Singapore Stock Exchange on Wednesday by streetTRACKS, enabling Asian investors trade an interest in bullion without the problems associated with arranging physical delivery of the metals.
Gold could surpass its record $850 level, driven higher by structural weakness in the dollar and rising jewellery demand in China and India, according to Baker Steel Capital Managers which controls $600m in commodity assets.
“The fundamentals supporting gold haven’t changed and the bull run will continue for the next five years,’’ said Trevor Steel of Baker Steel. “Even if a mine is discovered, it may take five to seven years for production to begin.” “
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.