Gold at $5,000?
June 20, 2008
Comment That Gold Could Reach $5,000 an Ounce
I've read a lot of forecasts, predictions and ramblings on the future of gold. I've heard reasonable predictions of $1,000 an ounce, futuristic impressions of $2,000 an ounce and now a mathematical fiction of $5,000 an ounce based on limited available quanities and the anticipation of skyrocketing demand in the face of raging inflation.
Yes, $5,000 an ounce as a possible future for gold through the eyes of Christopher Wyke of Schroder Investment Management Ltd., a very large global investment firm. Of course you should consider that Wyke was busy promoting Schroder's new Alternative Solutions Gold and Metals Fund at a conference in Hong Kong when he made these statements. As a promotional urging it certainly did get Wyke and Schroder plenty of investment community and Internet buzz, which may be worth much more than $5,000 an ounce to their new fund.
Todays $5,000 an ounce remark is certainly a large revision of Wyke's March 2, 2008 comments in a TimeOnline interview, where he said that "Gold could reach $1,200 a troy ounce or even $1,500". But conditions are always changing and new information comes to light every day, so who knows, maybe a 330% increase in ones forecast over a 3.5 month period is reasonable. Or maybe within context Wyke was talking about a more distant future, one which I will never expect to see.
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