The gold price
Potential for gold to reach 1980 highs? - 3 March 2008
Gold prices still have room to reach the highs seen in 1980, it has been claimed.
If prices are adjusted for inflation, the equivalent of the $850 an ounce level reached 28 years ago is about $2,500 an ounce today, analyst Greg Cavan explained to ABC News.
And with low US interest rates and the weakening dollar, this is a high that could be achieved within the next two years, he predicted.
Slowing gold production could also be another factor for those buying gold to consider - GFMS has said that gold mining output fell by one per cent last year.
A number of major mining firms have also recently reported drops in overall gold production for the last financial year.
"We're really nowhere near the real highs - the real historic highs of the price of gold - so there's a lot of potential to reach those old highs and break through them," Mr Cavan stated.
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If prices are adjusted for inflation, the equivalent of the $850 an ounce level reached 28 years ago is about $2,500 an ounce today, analyst Greg Cavan explained to ABC News.
And with low US interest rates and the weakening dollar, this is a high that could be achieved within the next two years, he predicted.
Slowing gold production could also be another factor for those buying gold to consider - GFMS has said that gold mining output fell by one per cent last year.
A number of major mining firms have also recently reported drops in overall gold production for the last financial year.
"We're really nowhere near the real highs - the real historic highs of the price of gold - so there's a lot of potential to reach those old highs and break through them," Mr Cavan stated.
Investing in Gold? For the cheapest, fastest & most secure route to solid Gold Investment simply register for a free, no-obligation account at BullionVault now...
Goldbug, 03 Mar '08
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