Gold Price of $1,000 per ounce is possible in 2009, Rise in Price Likely
Many people are confused by the price of gold in 2008, where it has proven to be unpredictable despite all of the economic turmoil the world is going through. Gold is typically a hedge bet against a bad economy, but the price has fallen sharply from all-time highs reached earlier in the year.
Gold Fields CEO, Nick Holland, says that gold is set to bounce back to a higher price, with $1,000 an ounce possible in 2009. Holland believes that the current market conditions resulted in a sell-down of everything, which has brought the price of gold down with it.
“But gold will regain its value relative to everything else, particularly as all the major currencies of the world are trading on negative real interest rates and inflation is picking up, which are all of the ingredients for a stronger gold price,” Holland told Mining Weekly Online.
While Holland has a vested interest in the price of gold, other experts are predicting rise in the price of gold, although not as high as Holland predicts. More conservative estimates predict the price of gold reaching around $800 in the coming weeks.
Check out gold price analysis video by Adam Hewison, President of INO.com, which predicts the price of gold making a comeback to around $800 in the near future.
Posted in Gold Investing