just hit $1603 which is its all time. According to Standard Chartered Plc the price of gold may soar to as much as $5,000 an ounce by 2020 as production growth slows down and demands from China and India increases.
Hong Kong based head of metals and mining for Standard Chartered, Yan Chen, said that they were looking for gold price to reach $2,000 by 2014. To an interview on Bloomberg Television, he said, "There is a chance that the gold price can be as high as $5,000 by 2020 as incomes in China and India rise."
Investors has caused this year's rally for gold bullion as the European debt crises continues to worsen and inflation accelerated in emerging markets.
Gold and silver price
have continued gaining. The spot gold price in London gained 0.4 percent to $1,600 and 12 percent at $1,597 in Singapore. Regarding the crisis in Europe, former US Treasury Secretary Lawrence Summers wrote at Reuters:
The European financial crisis has entered a new and far more dangerous phase. Where the crisis had been existential for small economies on the periphery of Europe but not systemically threatening to either the idea of European monetary union or to the functioning of the global financial system, it now threatens both European integration and the global recovery.
China is the world's largest gold producer and the demand here is expected to continue rising as economic growth boosts wealth and inflation rising at the fastest pace in three years. Even in India demand for gold will keep climbing as higher incomes spur buying more and more of this precious metal. Gold demand in India reached a record high of 963.1 tons in 2010, according to the World Gold Council.
Chen also said that gold production in the whole world will grow only 3.6 percent annually in the next few years. "The gold market will be in deficit in the next couple of years," he said, "The central banks are now back buying gold massively, turning from net seller of gold into net buyer."
Besides Standard Chartered, other gold price forecasters such as TheGoldForecast.com said that $1600 an ounce today is nothing. This is only the beginning. In one of their daily newsletters, and video presentations two months ago, TheGoldForecast.com explains how gold may continue climbing to $1600 - 1688 by the end of 2011. It is not the end of 2011 yet but gold price has already hit the $1600 an ounce mark.
The price of gold
has climbed up with a few corrections for the past 5 years. Since 2006 gold price has gained $967.88 or increased by 152.61%. Within 1 year gold price gained $410.60 and only within the past 6 months, gold has increased $231.90 an ounce.
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