Financial analysts have predicted that the price of gold will soar past the $2,000 mark within three years.
Further projections even have the price pegged at a possible £5,000 come the end of the decade.
According to a new report, continued demand for gold in the rising markets of China and India will spearhead the price rise. Low-interest rates in the western world and a delay before more mining commences are other factors that have been touted as a reason for the price to keep on climbing up until at least 2014.
Asian-orientated bank Standard Chartered made the predictions in their latest report, one analyst said: “Our base-case forecast is that prices rally to peak at an average of $2,107/oz in 2014, although our modelling suggests a possible ‘super-bull’ scenario of gold prices rallying up to $4,869/oz by 2020, should current relationships between Asian demand and gold persist.”
The report continued: “More important, we believe, will be the impact of higher mine production. We expect a steady acceleration in mine-supply growth in the years ahead, which should overwhelm demand growth beyond 2014. Nevertheless, we expect an extended period of high gold prices.”