Gold price set to double in four years!
LONDON, England - October 10, 2009 - Analysts at Edison Investment Research have predicted that the price of gold could hit $1,879 an ounce by 2013, driven by the aggressive monetary policy of central banks around the world and a chronic shortage of the precious metal.
Charles Gibson, a gold expert at Edison, argues in the report that the peak in the gold price has been delayed because the world was still facing deflationary forces. Previously Gibson had expected gold to reach $1,567 an ounce "in the near term".
The report says, "We reiterate our belief that gold is in the second phase of its bull run and that it has the potential to spike higher." It adds, "We believe that it will take longer than anticipated for quantitative easing and loose monetary policy to express themselves in inflation statistics."
The gold price hit an all-time high on three consecutive days last week, but the rally lost steam on Friday as the dollar strengthened and as traders locked in gains.
The price of gold for immediate delivery closed up 90 cents at $1048.10 an ounce on Friday, after hitting a record high of $1,062.70.
Charles Gibson, a gold expert at Edison, argues in the report that the peak in the gold price has been delayed because the world was still facing deflationary forces. Previously Gibson had expected gold to reach $1,567 an ounce "in the near term".
The report says, "We reiterate our belief that gold is in the second phase of its bull run and that it has the potential to spike higher." It adds, "We believe that it will take longer than anticipated for quantitative easing and loose monetary policy to express themselves in inflation statistics."
The gold price hit an all-time high on three consecutive days last week, but the rally lost steam on Friday as the dollar strengthened and as traders locked in gains.
The price of gold for immediate delivery closed up 90 cents at $1048.10 an ounce on Friday, after hitting a record high of $1,062.70.
