A new report from an asset management group states that recent turmoil across the world has fueled interest in raw materials such as gold.
According to Allianz Global Investors, the price of gold will rise to $1,700 an ounce by the end of 2011, Bloomberg reported. This estimate comes after the precious metal reached a record of $1,447.82 an ounce on March 24 as investors sought shelter from turbulence in Japan and the Middle East.
In addition, rising fears of inflation stemming from a global economic recovery and fluctuating interest rates will continue to drive interest in gold, the group stated. Gold posted a 30 percent gain in 2010, which was the highest annual increase since the financial crisis unfolded.
Allianz also reported that copper and cotton have reached record prices this year, and sugar investments have risen to a 30-year high.
"The macro environment is strong and we expect rising commodity prices in the next three to six months," Michael Verhofen, manager of the Allianz RCM Commodities Fund, told the media outlet.
Gold investments may help ensure a more secure future for aging Americans. A new survey conducted by the Society of Actuaries reveals that the prospect of inflation and rising healthcare costs are serious concerns for adults between the ages of 45 and 80, according to Financial-Planning.com. Only 5 percent of respondents who are closing in on retirement said that they have at least $1 million in savings and investments.