Gold News

Gold Prices 'could rise to $1,500 per oz'

Gold expert Charles Gibson has today (April 20th) predicted that a major shortage of the yellow metal could see Gold Prices increase to $1,500 per ounce, the Daily Telegraph reports.

Mr. Gibson, of Edison Investment Research, has suggested that negative real interest rates are skewing the 'leasing' machinery and creating a substantial squeeze on the market.

He explained that when this exact scenario occurred during the 1970s, the Gold Price rose to $850 per ounce, the equivalent of $1,560 per ounce in today's money.

Furthermore, he noted that gold mining companies are now no longer selling a section of their output to bullion banks and that the trend has reversed, creating an annual shortfall of about 500 tonnes.

Naturally, the continuation of such a practice could benefit anyone with a Gold Investment, as a lack of supplies in relation to demand will push prices higher.

Mr. Gibson's comments come after Philip Klapwijk, executive chairman of precious metals research firm GFMS, expressed a positive outlook for investing in gold in 2009.

"Conditions are very propitious for gold investments," he told Gold Investing News.

"We are going to see, after a bit of a lull, investment demand come back with a vengeance."

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