Gold News

Gold Prices 'could reach $1,300' in 2010

A senior figure at JP Morgan Chase & Co claimed yesterday (May 12th) that Gold Prices could be as high as $1,300 per ounce in 12 months' time, Bloomberg reports.

The yellow metal has enjoyed a strong performance since the beginning of the credit crunch as people have bought it in their droves in an attempt to find a store of wealth.

However, Jan Loeys, global head of marketing strategy at the firm, has explained that the tide is turning and Gold Investment looks set to rise for another of its qualities - providing a hedge against inflation.

He told the news provider: "Over the next year or so, we think we are going to be crossing $1,000, probably going ultimately to $1,200, $1,300 just for inflation hedging and lack of supply.

"The buying we are seeing now in commodities is really hedging, hedging off the potential risk that we will see a spike in inflation."

Mr. Loeys' views were strongly backed up recently by Warren Buffett, the renowned investor and second-richest man in the world, according to the latest Forbes magazine data.

Speaking at the annual shareholders' meeting of his Berkshire Hathaway investment vehicle in Nebraska, he explained that the huge fiscal output in response to the recession will see the dollar slide in the coming months.

"What we are doing is borrowing from the rest of the world and building up government debt," he said.

"The classic way of reducing the impact and cost of foreign debt is by reducing the value of the dollars you're going to repay them with."

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...


See all articles by Gold Bug here.

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.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals