The final bubble will be a golden one, page-22

Credit Suisse eyes $US2,000 gold

Credit Suisse is bullish on gold, forecasting the precious metal will rise to $US2,000 per ounce, a record high.

“Principal among our global equity strategist Andrew Garthwaite’s argument for gold prices to move higher is the almost unprecedented levels of global monetary and fiscal stimulus driving record debt levels, necessitating a prolonged period of negative real rates as a means to diminish debt burdens,” the investment bank told clients.

With the spot gold price currently trading at $US1,728 per ounce, Credit Suisse says this bullish price forecast “should lift all boats” when it comes to listed gold miners.

However, it believes some boats will float higher than others.

“Of the large caps which are in most demand from generalists seeking gold exposure, we maintain a preference for EVN and NST over NCM,” it said. “Of the mid-caps, we prefer SBM and AQG.”