Bullish new gold prediction $1000 an ounce and beyond

Dear readers,

What price do you foresee gold to be in 10 to 20 years? Personally, I don’t think reaching US$1000 would be a problem in the future. When Vice Chairman of Newmont Mining Corporation, Mr. Pierre Lassonde was receiving the coveted Geoff Stokes Memorial Award at Diggers & Dealers, his key note speech to 1,700 delegates included a forecast that the gold price was heading to $US1,000 an ounce and beyond.

Mr. Lassonde focused on six points in his forecast:

  • The bull market for minerals will last for at least another 20 years, and while the drivers of China and India may have soft moments, they will be an ongoing force for minerals and metals demand.
  • The US dollar will plunge through the massive current account deficit though the size of the country’s economy was unlikely to create a recession in the next few years.
  • The Canadian dollar will like reach parity and beyond with the $US while the Australian dollar will make further inroads on the Greenback.
    Copper and molybdenum are two metals that may experience a weakness, though oil, gold, platinum and nickel will maintain strength.
  • Since the 1990s the Dow Jones Average marker has had a fluctuating tussle with the gold price including a nadir for the metal in 1996 when the Dow was 28 times greater. The two were now moving into balance and could see gold move to a 2:1 status in the foreseeable future.
  • The gold price could reach $US750/oz by the end of this year and $US850/oz in the following 12 months.

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