The rally in gold prices has driven several bullion analysts to frenzied forecasts. Some say gold prices will reach $2,000 per ounce soon. Others are predicting big boom for the yellow metal, saying gold prices will zoom to $5,000 and eventually to even $15,000 per ounce in the years to come.
These days, the biggest gold buyers are not individual customers or families, but global central bankers that are vying with each other to accumulate gold reserves in an attempt to get out of their decades-old dependence on the US dollar as the best asset class. India jumped into the bullion fray to buy 200 tonnes of gold from the International Monetary Fund (IMF) early this month. Other countries like China, Russia, Brazil and Sri Lanka are frantically trying to accumulate gold reserves.
Agreed that gold has emerged as the best asset class among bullion traders, central bankers and families across the world, how far can the yellow metal price surge?
One of the avid proponents who is arguing that gold price will surge past $2,000 soon is the legendary commodities investor Jim Rogers. Rogers, chairman of Singapore-based firm Rogers Holdings, says gold prices are booming because currencies across the world are dropping and the US dollar is collapsing. His latest forecast: gold will touch double the current price—around $1,150. Meaning, Rogers says gold will surge to $2,300 per ounce in the coming months.
The rest of Dave's article is nonsense.