AmInvestment: Gold may rise above US$2,000 in 2 years

KUALA LUMPUR (Oct 10, 2012): Gold prices are expected to hover around US$1,800 an ounce in the next 12 months and could move above the US$2,000 an ounce level in two years, said AmInvestment Services Bhd director of retail funds, Ng Chze How.

Source from (The Sun Daily): http://www.thesundaily.my/news/512575
Published: October 11, 2012

"To hit above US$2,000 an ounce is probably going to take two years with some catalysts in the market, such as a continued weakening of the US dollar, a loose money credit policy, a low interest rate environment as well as strong demand from China, India and the Middle East -- the biggest consumer markets in terms of gold and jewellery," he told a media briefing on "Golden Investment Opportunities" here today.

Ng said with interest rates coming down, people are branching out to look at alternative investments.
"Gold and properties have been the winners in situation like this, and we're seeing a continuous trend of a low interest rate environment that is long term," he said, predicting that gold prices will continue to rise.
DWS Investments GmbH vice-president and portfolio manager Manuel Tenekedshijew, meanwhile, is more bullish on the precious metal, forecasting prices to surge to US$2,000 an ounce over the next six months.

"In the short term, there is increased likelihood of a correction after the recent run up in prices to US$1,800 an ounce. Any correction will probably set the base for further appreciation.
"Previous inflation-adjusted price of US$2,300 an ounce is likely to be breached and our (DWS Investments) long term price target of US$2,500 an ounce remains unchanged," said Tenekedshijew.
Meanwhile, a low valuation, a favourable market environment as well as a lower correlation to traditional equity markets makes gold and precious metals equities to be an attractive investment opportunity.

"Gold equities have underperformed gold prices during two occasions in the last few years, of which both relate to periods of significant macro uncertainty," said Tenekedshijew.