Bullish New Gold Prediction $1000 an Ounce and Beyond
Source: Mineweb.com (8/7/07)
Any gold producers still holding hedge books, particularly if they are more than four years old, are holding a losing proposition as the utilisation of such a financial tool has been a seriously negative function for at least three years with the progressive rise in the gold price.
That was one point made by Newmont's Pierre Lassonde to Mineweb at the opening of Diggers & Dealers Forum in Kalgoorlie yesterday,the largest mining conference by an Australian country mile...
He saw the US's appalling current account deficit (now representing 6% of gross domestic product) as pushing the $US down and helping create a "Tsunami of liquidity around the world."
Among Lassonde's forecasts were:
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 gold price could reach $US750/oz by the end of this year and $US850/oz in the following 12 months.
Lassonde sees the gold price moving towards "three zeros and a figure in front" and he was not sure whether that figure in front would be a one or what?