Gold has had an extraordinary year in 2007, gaining more than 28 percent. Blanchard and Co. analysts predict new record highs and continued strong growth through 2008 as investors seek out quality assets that hedge risk and offer strong returns.

“The subprime mortgage crisis was the catalyst that pushed gold to 28-year highs, and now we’re seeing investors make a flight to quality as fundamentals are supporting strong prices and fueling growth,” said Donald Doyle, Ccairman and CEO of Blanchard and Co. “Gold and other tangible assets are thriving and the trend will continue as we move further into this commodity super cycle next year.”

If investors use the S&P 500’s 6 percent return to date in 2007 as a snapshot of the stock market, gold will become more appealing to more investors.

Doyle and his analysts are predicting that gold will reach $1,150 in 2008, extending its current six-year bull market that has returned an annualized 20 percent year-over-year return on investment since 2002.

Doyle projects the dollar will continue its slide, prompting the Federal Reserve to reduce rates further to stimulate the economy or risk recession - all positives for gold.

“Strong global growth, abundant global liquidity, reduced supply from central bank sales and mine production, strong emerging demand coming from the liberalization of gold ownership for Asian citizens, and a growing enthusiasm for gold from investment firms, will continue to push prices dramatically higher,” Doyle says. “Given the fact that powerful forces are limiting the overall growth in gold output, higher prices will be required to keep supply and demand in balance.”

Gold may dip at the end of 2007 as firms square books, likely selling gold as it has been one of the few bright spots in the market this year. Doyle said investors should take advantage of any dips as buying opportunities.

Doyle also believes 2008 will be a year in which alternative investments, such as rare coins, will become more accepted by individual and institutional investors because of their potentially higher returns. In particular, he points to the Yale University Endowment, which has allocated 50 percent of its assets to alternative investments, as evidence of the legitimization of tangible assets within the marketplace.

“The Wall Street Journal reported that Yale University’s Endowment Fund was the top performer in its class over the past two decades and is again ahead of the pack with a 28 percent gain for the fiscal year that ended in June,” Doyle says. “We see the next bull market in numismatics emerging now.”