The gold price
Gold Prices 'could rise to $1,500 per oz' - 20 April 2009
Gold expert Charles Gibson has today (April 20th) predicted that a major shortage of the yellow metal could see Gold Prices increase to $1,500 per ounce, the Daily Telegraph reports.
Mr. Gibson, of Edison Investment Research, has suggested that negative real interest rates are skewing the 'leasing' machinery and creating a substantial squeeze on the market.
He explained that when this exact scenario occurred during the 1970s, the Gold Price rose to $850 per ounce, the equivalent of $1,560 per ounce in today's money.
Furthermore, he noted that gold mining companies are now no longer selling a section of their output to bullion banks and that the trend has reversed, creating an annual shortfall of about 500 tonnes.
Naturally, the continuation of such a practice could benefit anyone with a Gold Investment, as a lack of supplies in relation to demand will push prices higher.
Mr. Gibson's comments come after Philip Klapwijk, executive chairman of precious metals research firm GFMS, expressed a positive outlook for investing in gold in 2009.
"Conditions are very propitious for gold investments," he told Gold Investing News.
"We are going to see, after a bit of a lull, investment demand come back with a vengeance."
How best to Buy Gold today? "If there's an easier route to buying investment gold, I have not found it," says one BullionVault customer. Find out for yourself and start Investing in Gold here...
Mr. Gibson, of Edison Investment Research, has suggested that negative real interest rates are skewing the 'leasing' machinery and creating a substantial squeeze on the market.
He explained that when this exact scenario occurred during the 1970s, the Gold Price rose to $850 per ounce, the equivalent of $1,560 per ounce in today's money.
Furthermore, he noted that gold mining companies are now no longer selling a section of their output to bullion banks and that the trend has reversed, creating an annual shortfall of about 500 tonnes.
Naturally, the continuation of such a practice could benefit anyone with a Gold Investment, as a lack of supplies in relation to demand will push prices higher.
Mr. Gibson's comments come after Philip Klapwijk, executive chairman of precious metals research firm GFMS, expressed a positive outlook for investing in gold in 2009.
"Conditions are very propitious for gold investments," he told Gold Investing News.
"We are going to see, after a bit of a lull, investment demand come back with a vengeance."
How best to Buy Gold today? "If there's an easier route to buying investment gold, I have not found it," says one BullionVault customer. Find out for yourself and start Investing in Gold here...
Goldbug, 20 Apr '09
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