Scotia Capital is ‘Extremely Bullish’ on Gold, Silver and Diamond Prices

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"Based on our bullish call on gold and our thesis that growth through a pipeline of quality assets and solid exploration is the key driver of value," Scotia's analysis concluded, "gold companies should trade at higher valuation in anticipation of that growth."

In its initial foray into coverage of precious metals recently, Scotia Capital declared, "We are extremely bullish on the prices of gold, silver and diamonds over the next couple of years, as we believe that falling gold and silver production, along with rising investment and jewellery, will drive prices higher."

"In 2007, we expect gold to hit peaks over $750/oz and to average $675/oz," Scotia Capital's analysts forecast. "For 2008, we believe gold will rally even higher toward $800/oz but average $720/0z. We believe that these forecasts may prove to be conservative."

"Based on our bullish call on gold and our thesis that growth through a pipeline of quality assets and solid exploration is the key driver of value," Scotia's analysis concluded, "gold companies should trade at higher valuation in anticipation of that growth. Those without growth will likely languish with poor share price performance."

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