Gold supply will continue to fall, says BlackRock

Stretched supply and increasing demand for gold make it a solid long-term investment, says Alex Hoct...

Stretched supply and increasing demand for gold make it a solid long-term investment, says Alex Hoctor-Duncan, BlackRock's head of UK retail. Hoctor-Duncan points to the fact production fell 4% last year and is likely to do so again in 2009. "The industry discovered 15m ounces of gold last year, compared with production of 80m ounces," he says. "On the demand side, the growing wealth of emerging economies is likely to support jewellery demand in the future, while financial turmoil and inflationary pressures underpin investment demand." He adds gold bullion is a wise hedge in the c...