Gold has attracted investors for centuries, protecting their wealth and providing a "safe haven" in troubled or uncertain times. This appeal remains compelling for modern investors although there are also a number of other reasons that support the widespread renewal of investor interest in gold:
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Attractive price environment at $1,650/ounce;
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Some analysts predict return to January 1980 equivalent of more than $2,500 USD/ounce;
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Interest rates and inflationary pressures are low by comparison;
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Increased global unrest encourages gold investment in troubled times;
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China is booming; Chinese Government recently de-regulated private ownership and investment in gold, introducing 1.3 million people to market;
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India is thriving with 1.1 billion people and its culture favours gold; and
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Diminished supply and increased demand for gold.