Gold News

Gold Price of $1,500 is 'achievable' in next 18 months

A senior figure at Sprott Asset Management claimed today (June 12th) that Gold Prices could reach $1,500 by the end of 2010.

John Embry, chief investment strategist at the firm, has long been one of the world's biggest gold bugs and is as bullish as ever about the yellow metal, the Financial Post reports.

In particular, he explained that Buying Gold is the obvious way for investors to find a safe haven for their money at a time when most major paper currencies are floundering.

He told the news provider: "It's not gold that has changed, it's the value of paper money. Relative to the overall financial sphere, gold is a small asset class.

"So it doesn't take a lot of money moving in its direction out of paper to have an outsized impact. I think $1,500 [an ounce] is certainly achievable in the next 12 to 18 months."

Those comments were strongly corroborated last week by Carlos Sanchez, a New York-based analyst with CPM Group.

He explained that ongoing concerns about the state of the economy - and the sheer volume of money printing in response to the financial crisis - are pushing investors towards gold.

"With continued economic weakness across the board, there's a lot of uncertainty about what's going to happen," he told CNNMoney.

"There are major problems going on right now. In times like this, you have investors rushing towards safe-haven assets like gold."

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