The proportion of Middle East based investors interested in gold appears to be increasing substantially, according to Goldman Sachs Asset Management Chairman Jim O’Neill.
O’Neill, also known as the creator of the “BRIC” acronym, recently wrote in a note to clients highlighting that during his visit to Dubai and Abu Dhabi, the topic of gold came up much more frequently than he expected during his discussions with various fund mangers.
“My meetings involved more discussion about Gold prices than is usually the case in other parts of the world,” O’Neill asserted. “The recent remarkable resilience of gold, despite what has happened to silver and other commodities, is rather impressive.”
“This gold price strength may perhaps be just a simple function of both the extremely low level of G7 real interest rates and the prospect that they might not rise anytime soon,” the Goldman Sachs strategist continued. “I got the impression that there a quite a few bulls of Gold in the Middle East.”
Goldman Sachs Group Inc is the fifth- biggest U.S. bank by assets and was known as the world’s most profitable securities firm before converting to a bank during the 2008 financial crisis.
Goldman Sachs is seen by market analysts as capable of moving the market.
