Tuesday, June 8, 2010

GFMS Predicts $1,300 Gold

GFMS' CEO, Paul Walker, said that he expects gold to trade as high as $1,300 this year and there's potential for it to go to $2,000.
“What’s happening in Europe at the moment increases the probability that we will see a double dip,” Walker, who joined the independent, London-based research company in 1995, said yesterday. “The investment case for gold is going to remain robust for the rest of this year.”
The kicker that would push gold up that high would be a spread of the Eurocontagion to other regions. Given that platinum demand is more tied to economic strength, a reneweed spell of trouble could push gold above platinum.

If gold does ascend to those levels, then a full-fledged mania will be underway. Already, at current prices, the metal's sporting a double-digit gain.

A note: GFMS is the same firm that, earlier, was predicting that gold would go to $1,300 and then collapse. They've changed their tune quite a bit.

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