Gold price could rise in 2007, says expert 12:27:31 GMT, 02 May, 2007 A "shortage" of gold in China in the "long-term" could have a positive effect on the price of the precious metal this year, according to US gold coin firm Lear Financial's gold investment advisor.
Speaking to South African website Business Day, Kevin DeMeritt believes that 2007 has a "good chance" of witnessing a gold price that beats last year's high of $725 (£363) per ounce.
Demand for gold is not being matched by supply, however, Lear Financial explained. He also stated that it is currently "difficult" for China to create any kind of "major long-term growth in gold production".
Lear Financial went on to state that: "As a long-term solution the world's largest 20 gold producers are combating these critical shortages with increased exploration budgets, but in the short term gold prices will continue to climb."
The price of gold can only realistically rise in light of the fact that, according to Lear Financial, demand for jewellery, investments and high-tech industry increases at the same time as "this stronger demand is not being met by worldwide gold producers thanks to declining production - from South Africa in particular."
