re: gse gold article mining news
Gold to reach $850: punditFriday, 12 January 2007 Paul Garvey
ONE of the more accurate gold tipsters of recent times has forecast another strong year for gold, with the yellow metal expected to hit a high of $US850 per ounce and maintain an average of $716/oz.
Ross Norman of TheBullionDesk.com said he "remained manifestly bullish" for gold, tipping the metal to add to its five-year run of appreciation with a gain of 18% over 2007.
"Whilst a weakening US dollar, stagnating mine production, buoyant oil prices, ongoing geopolitical tension and the spectre of inflation may provide a positive backdrop, we expect that sentiment by institutional investors demand growth arising from a broader access to gold both across a broader geographic spectrum as well as in terms of more products such as ETFs and bullion-linked indices," Norman said.
"However, the fragmentation of the gold market that follows in consequence may well lead to increasing problems with liquidity and thus price volatility is also expected to remain high."
Elsewhere in the precious metals complex, Norman said silver would average $13.60/oz in 2007, "despite less than inspiring fundamentals", while platinum and palladium were tipped to average $1350/oz and $435/oz, respectively.
"After years of a supply deficit, South African [platinum] miners have been working hard to close the gap – but it just keeps racing away from them," Norman said.
"There has been an ongoing concern that high yet volatile prices could trigger massive spend by industrials looking for substitutes. With the possible exception of fuel cells, the all-important auto and industrial sector remain wedded to platinum and strength in the US and Asian economies is likely to continue to fuel demand."
Norman was the most accurate forecaster for gold during the London Bullion Association's 2006 survey of analysts, and placed second in the forecasting for silver, platinum and palladium.
Over the past five years, Norman has recorded two firsts, a second and a third in his gold forecasting.
Overnight, gold was trading at $613.90/oz, silver at $12.46/oz, platinum at $1138.80/oz and palladium at $332.85/oz.
ZNO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
