GOLD NEWS

Gold reclaiming historic role as official financial asset – Murenbeeld

Dundee Wealth economist Marti Murenbeeld forecasts central bank gold purchases “will continue for many years to come.”

RENO (Mineweb) - 

In a recent article, Dundee Wealth economist Martin Murenbeeld suggests, "The geopolitical factor may be about to 'heat up' for gold, observing "we’d like a small exposure to gold on this account alone."

However, Murenbeeld noted the attack in January on a gas facility in Algeria by an al Qaeda-linked group that left 37 hostages dead "has no discernible impact of gold prices," nor did the Israeli strike on a weapons convoy heading for Lebanon last week.

In his February 1st edition of the "Gold Monitor", Murenbeeld observed "there is a gentle rise in monthly sales – albeit obscured by month-to-month volatility." He advised that "physical demand (except in India on account of the hike in import duties) will continue to be quit robust in 2013."

Meanwhile, Murenbeeld is increasingly bullish on central bank gold purchases. "It is our view that central bank gold purchases will continue for many years to come. Indeed, it is our view that gold is reclaiming its historic role as an official financial asset."

"Our baseline scenario has central banks buying gold in size (500 tonnes per annum) for at least the next five years."