Gold Price Breaks Through US$1000 Barrier as Investors Seek out Wealth Preservation

NEW YORK--(Business Wire)--
The gold price today broke through the `symbolic` $1000.00/oz mark reaching
$1004.50 on the 11 a.m. London price fix, and topped $1007 during morning
trading. Before early September, the highest 2009 price was on February 20 when
gold fixed (in the afternoon) at $989, and it has traded in the range $870 to
$993 ever since, with an average price over that period of $879.

The rise translates to an annual increase of more than 21 percent on the average
price in September 2008, which was $829.93/oz.

Aram Shishmanian, CEO of World Gold Council, commented:

"Reaching the $1000 mark once again shows that this price level is no longer the
watershed for gold that it once was. The sustained demand we are seeing from
investors is, however, not wholly about returns. Investors are turning to gold
as they seek assets that preserve their wealth, whatever the financial weather.
In 2009, we have seen record inflows into exchange traded funds and significant
increases in retail demand for bars and coins as investors around the world took
steps to diversify risk in a systematic way and improve their portfolios`
long-term prospects.

"The stability in the gold price over the long term is testament to the
diversity of gold`s demand base, which insulates the price from movements in any
single category or country. This is a luxury many other assets, more closely
linked to industrial output or consumer spending, do not enjoy. This diverse
demand base has helped support the price despite a pressure on jewelry demand
driven by ongoing economic uncertainty and high local gold prices."

Today`s $1000/oz record follows a sustained rise in price over the past seven
years.

World Gold Council identified the following short term reasons for the recent
gold price rise:

* Recognition of gold as an asset class: Both retail and institutional investors
are increasingly turning to gold as an independent asset class to ensure their
portfolios are properly diversified and risk-mitigated.
* Continued fears over inflation: Leading economists are predicting rising
inflation as a result of governmental measures to stimulate recession-hit
economies. Gold is a proven hedge against inflation; while its real value can
vary in the short term, its purchasing power has remained stable over centuries.

* Weakening dollar: Gold is a statistically-proven hedge against fluctuations in
the US dollar, the world`s main trading currency. The dollar, having traded at
highs earlier in the year, has weakened against the euro and sterling in recent
months.
* Equity market performance: Ongoing concern about whether the recent rise in
equity markets is sustainable in the short term is encouraging investors to look
to gold`s unique wealth preservation qualities to underpin their portfolio
strategies.

Notes to Editors:

World Gold Council

World Gold Council`s mission is to stimulate and sustain the demand for gold and
to create enduring value for its stakeholders. It is funded by the world`s
leading gold mining companies. For further information visit www.gold.org.

World Gold Council
Matt Graydon, + 44 (0)207 826 4716
Director of Corporate Communications
matt.graydon@gold.org
or
Lauren Carmody, 203-378-1152 ext 106
lcarmody@cjpcom.com

Copyright Business Wire 2009