Bank: Gold Will Hit $5,000 an Ounce

Ad Feedback

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.

Log in or create an account to post a comment.  

CBN IS HERE FOR YOU!

Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

CBNNews.com

CBNNews.com

CBN News is a national/international, nonprofit news organization that provides programming by cable, satellite, and the Internet, 24-hours a day. Follow us on Facebook, Twitter, and Google+.