Monday 20 June 2011
Posted by
Admin Hijrah Dinar
Adam Sharp - Tuesday, June 14th, 2011
Standard Chartered just released a 64-page outlook for gold, and the bulls will be pleased with its findings. Its authors say $5,000 gold is likely in the near future.
The report highlights a worldwide lack of new production and increasing demand from Asia. More from CNBC:
Standard Chartered just released a 64-page outlook for gold, and the bulls will be pleased with its findings. Its authors say $5,000 gold is likely in the near future.
The report highlights a worldwide lack of new production and increasing demand from Asia. More from CNBC:
“There are very few large gold mines set
to commence operation in the next five years,” said Standard’s analyst
Yan Chen in a report Monday. “The limited new supply comes at a time
when central banks have turned from being net sellers to significant net
buyers of gold. The result, in our view, will be a gold market in
deficit, even assuming flat growth in demand. With the supply-demand
balance so out of kilter, we see the gold price potentially going to
US$5,000/oz.”
The Standard Chartered report also points to skyrocketing demand from
Asia. China, in particular, has a lot of room to grow their gold
reserves, which currently make up only 1.6% of all holdings (as we noted yesterday):
If the country were to bring this
proportion in line with the global average of 11 percent, it would have
to buy 6,000 more tonnes of gold, equivalent to more than 2 years of
gold production.
Category:
Gold Saving / Investment
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