The gold industry is set for “big things”

Continued uncertainty in the global economy means now is the "opportune time" to invest in gold miners, according to Foster Stockbroking analysts.

In an investor note this morning Foster Stockbroking said investors remained wary on the back of continued talks on the Eurozone crisis this week.

Analysts said in their view the crisis was not on the road to recovery but had been "pushed out to be dealt with at some point in the future".

With uncertainty at a high Foster Stockbroking said the gold industry was set to benefit.

"We believe the uncertainty surrounding high debt levels, additional deterioration in unemployment levels and economic activity places more confidence in gold being the physical asset for protection."

Analysts said investors would be looking to "protect themselves" and the move towards gold could mean "big things" for the commodity in the near future.

"Given the recent sell off in equities and sharp decline in gold prices, we believe now is an opportune time to buy existing producers and developers at current levels, and benefit from any sharp short term rebound in the gold price," they said.

The tip comes on the back of news yesterday that Australia's gold production fell five per cent in the first three months of 2012, marking the third consecutive quarter of losses.

Mining consultants blamed bad weather, maintenance, and lower grades and processing rates as the key problems for local miners.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.