Lunar rise predicted for gold prices

There is no obvious limit for the long-term price of gold, it has been claimed.

Doug Casey of Casey Research told its investment publication, Big Gold, that the US is facing a "monumental" financial crisis, which could lead to either a deflationary crash like that of 1929, or inflation as banks increase their reluctancy to lend.

He pointed out that gold bullion has continued to increase in value over the past seven years ands advised investors to hold out for higher prices, which he says will undoubtedly come.

"Gold has been in a bull market since 2001. It's gone up, on average, about 25 per cent per year compounded and there's absolutely no reason the bull market should stop now. Strictly gazing through a crystal ball, I think it's going over $1,200, no problem. Gold is not just going through the roof, it's going to the moon," he said.

Some analysts believe that gold prices may rise to the record $1,000 mark soon, helped by factors including an oil pipeline explosion in Iraq on Thursday (March 27th), potentially leading to an increase of investment in gold.

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