Gold News

Gold Prices may rise by 'thousands of dollars' in the long term

A well-respected investment letter has suggested that Gold Prices could increase by "thousands of dollars" in the next few years, Market Watch reports today (April 9th).

The yellow metal has struggled to overcome resistance on the few occasions it has broken through the psychological $1,000 per ounce barrier, with investors taking short-term profits.

However, Mary Anne and Pamela Aden, authors of the monthly Aden Forecast, have explained that a Gold Price of $5,800 on the upside is the equivalent target to historical gains in the 1970s.

The news provider quotes them as writing: "Gold is the ultimate inflation hedge and there's no telling where it'll end up, at least well into the thousands of dollars in the years ahead, and maybe sooner.

"Remember, gold's peak in 1980 at $850 is now the equivalent of about $2,200 in today's dollars. Gold has not even approached that level yet. Once the dollar declines again and inflation kicks in, it'll be another story."

A positive outlook for gold was also expressed last week by Philip Stephenson, Asia Pacific assistant regional vice-president at Newmont, Australia's largest producer of the metal.

Speaking at the Paydirt Gold Conference, he explained that gold is now "pretty sexy again" as it has performed particularly well during the global financial crisis.

"It's a great time for us in the gold sector. The fundamentals for the gold industry are sound," he was quoted by the Brisbane Times as saying.

"The gold price has weathered the storm pretty well compared to base metals."

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