Gold miners have responded to recent falls in the price by concentrating on the highest quality deposits, scrapping extraction of more marginal material. This will cause a "significant decline" in global production of gold, according to Angelos Damaskos, who runs the Junior Gold fund.
"A shift in gold market dynamics in the near future could result in a supply crunch," he said. ...
"The consensus among generalist investors is that gold reached a near-term peak in 2011 when it spiked at $1,927 and is now in decline. This is based on apparent stability in the eurozone and confidence that the debate on the US fiscal cliff will be resolved in a satisfactory manner," Mr Damaskos explained.
"However, it is likely that macroeconomic events will disappoint and impact the market negatively, dragging the European or US economies back into recession and forcing central banks to intervene in new, radical ways. Such developments would spook the market, encouraging investors to turn to gold as the ultimate safe haven." ...
"Should economic events take a disappointing turn, causing a flight back to gold, demand levels could exceed supply, creating a global supply crunch," he said.
"This scenario is a recipe for the gold price to reach highs, potentially of as much as $2,000."
"A shift in gold market dynamics in the near future could result in a supply crunch," he said. ...
"The consensus among generalist investors is that gold reached a near-term peak in 2011 when it spiked at $1,927 and is now in decline. This is based on apparent stability in the eurozone and confidence that the debate on the US fiscal cliff will be resolved in a satisfactory manner," Mr Damaskos explained.
"However, it is likely that macroeconomic events will disappoint and impact the market negatively, dragging the European or US economies back into recession and forcing central banks to intervene in new, radical ways. Such developments would spook the market, encouraging investors to turn to gold as the ultimate safe haven." ...
"Should economic events take a disappointing turn, causing a flight back to gold, demand levels could exceed supply, creating a global supply crunch," he said.
"This scenario is a recipe for the gold price to reach highs, potentially of as much as $2,000."
More information can be found online at http://www.goldbullionadvisors.com
No comments:
Post a Comment