The gold price
Gold Prices set to 'really move' upwards - 26 August 2009
A highly successful market speculator claimed yesterday (August 24th) that Gold Prices should push past $1,200 per ounce in the future, according to the Gold Report.
The yellow metal achieved its all-time high of $1,030 per ounce last March but critics note that it has consistently struggled to significantly break the four-figure barrier.
Now Victor Goncalves, whose resource stock selections in late 2008 have realized gains of up to 800 percent, believes that a simple look at the basics of supply and demand suggests that gold should move higher.
"I think it's do-or-die right now. It's either going to really move or peter out, and I think it's really going to move," Mr. Goncalves, who is also president of the Equities and Economics Report, told the news provider.
"[In June], I saw the price of gold year-over-year was two percent lower. Demand was up 38 percent. That normally doesn't make a lot of sense, so I did some quick calculations to see where the price of gold should end up in relation to the increased demand. In theory, it should be $1,273 and I suspect it will get there."
Those comments come after Andrey Kryuchenkov, an analyst at VTB Capital, which is one of Russia's leading universal banks, also sounded a positive note for the future of the Gold Price.
He explained in an interview with Reuters that, despite the current prevalence of a deflationary economic environment, the threat and eventual arrival of inflation should keep the yellow metal strong.
"For the rest of the month gold will be trading on sentiment [and on] the dollar," he told the news provider.
"I expect prices to recover well when we have full-blown inflation, as [gold is] an inflation hedge ... but right now we are still far off, we are still pretty much in deflation."
For the very best Gold Prices – live online – plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...
The yellow metal achieved its all-time high of $1,030 per ounce last March but critics note that it has consistently struggled to significantly break the four-figure barrier.
Now Victor Goncalves, whose resource stock selections in late 2008 have realized gains of up to 800 percent, believes that a simple look at the basics of supply and demand suggests that gold should move higher.
"I think it's do-or-die right now. It's either going to really move or peter out, and I think it's really going to move," Mr. Goncalves, who is also president of the Equities and Economics Report, told the news provider.
"[In June], I saw the price of gold year-over-year was two percent lower. Demand was up 38 percent. That normally doesn't make a lot of sense, so I did some quick calculations to see where the price of gold should end up in relation to the increased demand. In theory, it should be $1,273 and I suspect it will get there."
Those comments come after Andrey Kryuchenkov, an analyst at VTB Capital, which is one of Russia's leading universal banks, also sounded a positive note for the future of the Gold Price.
He explained in an interview with Reuters that, despite the current prevalence of a deflationary economic environment, the threat and eventual arrival of inflation should keep the yellow metal strong.
"For the rest of the month gold will be trading on sentiment [and on] the dollar," he told the news provider.
"I expect prices to recover well when we have full-blown inflation, as [gold is] an inflation hedge ... but right now we are still far off, we are still pretty much in deflation."
For the very best Gold Prices – live online – plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...
Goldbug, 26 Aug '09
Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.
