Boston, MA (PressExposure) July 22, 2011 -- Retailers in Abu Dhabi are claiming that gold remains an attractive prospect for investors as they continue to strive for a safe haven for their cash.
Alternative Asset Analysis (AAA), an organization that advocates alternative investments, supports the claim that despite further price rises, gold is still a good alternative investment bet.
The price of gold has soared once more in the past few weeks, by a further $160 per ounce to $1,660. As a result, some buyers have been hesitant recently, according to the retailers who claim that for some, gold is simply getting too expensive.
The rise in value does also, of course, bode well for those who already have investments in gold, as their predictions that the value will continue to rise are paying off. Many analysts now believe that gold prices will continue to rise further.
Managing director of International Operations for Malabar Gold, Shamlal Ahammed M.P, told gulfnews.com that historic trends indicate that gold is a safe place to invest money and although it is expensive at the moment, prices are likely to remain strong,
AAA's analysis partner, Anthony Johnson, said, "Gold is not affected in the same way as equities and other higher risk traditional assets by the strength of the economy in general, so it's a great investment for those who want to diversify their portfolios."
The owner of one jewellery retailer, Al Safina Jewellery in Abu Dhabi, Mohammad Amin, said that people with more money are purchasing gold as an investment: "Due to rising gold prices, the sales have come down. However, those who have higher savings seem to be more interested in purchasing gold bars than jewellery."
The ongoing financial and political instability in Europe and the Middle East are only serving to increase gold values, according to analysts who feel that pricing will continue to rise in the coming years.
Giyas Gokkent, a chief economist at the National Bank of Abu Dhabi, told gulfnews.com: "Gold prices are linked to uncertainty and the reason that gold has had such a good run recently is because of rising risk aversion as a result of the Eurozone debt problems. Gold offers a potential for capital gain if currencies are debased."
AAA is keen to encourage ethical investment in alternative assets, including real estate, private equity funds and managed forestry, through firms like Greenwood Management, who are managing sustainable forestry projects in Brazil.