Free Republic

A HIGH probability of a sharp slowdown in US economic growth and a slide in the dollar are likely to continue driving investment in gold this year, says precious metals consultancy GFMS in its Gold Survey 2006, launched yesterday. The main reason for gold’s current strength is investment demand rather than jewellery manufacturing, says GFMS chairman Philip Klapwijk. Inflationary pressure and political tension in the Middle East should also boost demand for gold. As the gold price performed well, it would attract new investors. “We’d only need to see a tiny slice of mainstream assets diverted into gold, which comparatively...