$3400 Gold: Pipe dream or Possibility?
Source: Mineweb.com (9/19/07)
A short article in today's Times newspaper in the UK recounts that Christopher Wood, chief strategist at big Hong Kong broker CLSA (whose largest shareholder is France's Credit Agricole, the world's 7th largest bank by asset value) feels that "market ructions and a collapse of the dollar could send gold prices to $3,400 an ounce or more in the next three years."
Is this just a euphoric statement by someone carried away as the gold price strengthens above the $700 mark, or worthy of serious consideration?
Somewhat frighteningly, perhaps the ‘serious consideration' scenario definitely wins out here. $3,400 an ounce is a little less than five times the current gold price level - and price gains of this magnitude have been seen in the base metals and uranium sector over the past three to four years.