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Gold prices 'could double' over the next few years
Bullion
Vault
Wednesday, Dec 17, 2008
A senior figure at the investment arm of Commerzbank has claimed
today (December 16th) that gold prices could double in the next
three to five years, Reuters reports.
It has been widely reported in recent weeks that gold would struggle
as a period of deflation sets in, but the dollar - which tracks
in the opposite direction to the yellow metal - is on the slide.
Now Edward Hands, a portfolio manager for the corporates and
markets division of Germany's second-largest bank, has explained
that the fiscal and monetary stimuli currently taking place mean
that "it would be prudent to have some exposure to gold".
He told the news provider: "The purpose of the stimulus
is to reduce the debt burden. The easiest way to reduce debt is
through inflation, achieved primarily through currency depreciation.
(ARTICLE CONTINUES BELOW)
"Certainly over the course of three, four, five years, you
could see the gold price double quite easily."
Mr Hands' view that prices could double from the current level
of around $830 per ounce was strongly corroborated recently by
Citibank, the second-largest financial institution in the US.
Chief technical strategist Tom Fitzpatrick explained earlier
this month that the group sees gold as being on a strong bull
run and that prices could even break the $2,000 per ounce barrier
next year.
"We continue to believe that a move of similar percentage
to that seen in the 1976-1980 bull market can be seen, which would
suggest a price north of $2,000," he commented.
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INFOWARS:
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