Mon, December 27, 2010
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A shining year for gold

2010-12-27 03:24:17 GMT2010-12-27 11:24:17 (Beijing Time)

The gold price has hit several all-time highs during 2010, as investors worried about economic recovery or the euro zone debt crisis, and it's expect to climb further in 2011.

The sky's the limit.

The gold price rise certainly doesn't seem to show any signs of stopping.

It hit several all-time highs in 2010.

The most recent record was around $1,430 an ounce, which gold touched earlier in December.

Bob Parker, Senior Adviser at Credit Suisse says he thinks the precious metal will keep climbing into 2011.

"Well our view is that gold will trade in 2011 between $1,400 where we're very close to now, and as high as $1,500. And I think one message there is that the gold price goes up, but that the pace of appreciation will be less than it has been in the past two years."

Analysts say gold has been popular among investors for several reasons.

The yellow metal is seen as a safe haven at times of turmoil - whether in the economy as a whole, the currency markets or the banking sector.

The euro zone debt crisis has sent some investors running from the euro or the dollar.

This gold vending machine - unveiled in a five star hotel in Spain in September - made purchasing gold even easier.

Indians have long been one of the world's biggest consumers of gold - but lately they've found they're not getting as much bling for their buck.

Bob Parker says there are ways of investing in gold without buying bullion.

"Generally gold mining shares are cheap relative to the value of gold and consequently if you like gold, actually looking at the equity of mining companies I think is more interesting."

Even if gold continues to shine during 2011, analysts say other precious metals like platinum and palladium also have the potential to polish up nicely.

Joanna Partridge, Reuters

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