According to Reuters gold is overpriced and could fall below $1,000 an ounce once bullion loses its safe-haven advantage over metals with stronger fundamentals, said the head of European commodity hedge fund Tiberius Group.
Christoph Eibl, CEO and founding partner of the Swiss firm, said that gold investment currently offers investors a psychological protection against economic uncertainties, but gold "has nothing to offer" in the long run. Eibl said investors are better off investing in platinum group metals, with their market fundamentals more attractive because both platinum and palladium are likely to remain in or close to deficits.
"From a strategic long-term perspective, you don't want to be investing in precious metals," referring to gold and silver, Eibl told Reuters Monday on the sidelines of the London Bullion Market Association (LBMA) annual conference in Montreal. Asked how low the gold prices could fall, he said "Below $1,000" an ounce, which better reflects bullion's production cost.
Find out more at http://www.reuters.com/article/2011/09/20/businesspro-us-gold-lbma-tiberius-idUSTRE78J29120110920
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