Gold News

Gold Prices 'to rise by 50 percent in next two years'

A senior figure at the Sovereign Society has claimed today (June 16th) that Gold Prices could increase by as much as 50 percent in the next two years.

Eric Roseman, investment director at the firm, has explained in an open letter on that "one of the worst bouts of inflation America has ever seen" is on its way.

With investors traditionally Buying Gold as a hedge against inflation - and demand far outweighing supply - Mr. Roseman believes that a sustained rise for the yellow metal makes "perfect sense".

He wrote: "Right now, gold is poised to fly past $1,000 per ounce. Over the next 12 to 24 months, I wouldn't be surprised to see [it] surge by 50 percent or more."

Mr. Roseman's argument comes just a few days after it emerged that output in South Africa - the world's third-largest gold producer - slumped by 13 percent on a year-on-year basis in April.

Research and consulting firm Frost and Sullivan released a new report indicating that production in the country could continue to slide until 2014 - positive news for anyone with a gold investment.

"The South African government's renewed focus on mine safety, declining ore grades, electricity shortages, skills shortages, increased operating-cost pressures and a difficult labour environment will result in further production cuts," Wonder Nyanjowa, a mining and metals analyst at the company, told Mining Weekly.

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