The price of gold could be on its way to $5,000 an ounce, according to a new report issued by Standard Charter Bank.
The bank said that central banks are now buying gold instead of selling it. The London-based bank also pointed to increased buying by China and India.
It predicts that only a small number of new major gold mines will go into operation in the next five years.
This adds up to more demand for gold and no significant increase in supply.
"We conclude that gold production growth will be limited, which will continue to fuel the gold cycle," bank executives said in a statement.
"We believe demand will be driven by continued growth in per capita GDP in China and India, a weak U.S. dollar and high inflation, which have fuelled doubt in the creditability of paper currency," they said.
"Ironically, central banks, which collectively had been net buyers of gold until 2010, would also be a powerful force driving gold demand," they said.
The price of gold has risen dramatically over the past year due to dramatically increased demand. Gold traded for $1,525.03 on Tuesday, according to tracking Web site GoldPrice.org.