I've seen comparable predictions and better over the years . . . but not in the highly influential Drudge Report.
What this tells me is that the notion of gold going ballistic is finally becoming less fantasy and more mainstream. (Well, duh! For some of us, that's old news.) I would actually prefer that this not happen for a while yet. The longer gold continues an ascent that is almost undetected by the masses, the more frenzied the buying will eventually be.
Gold to Reach $5,000 Due to Supply Shortage: Report
Published: Tuesday, 14 Jun 2011 | 2:16 PM ET
By: John Melloy
Executive Producer, Fast Money
An exhaustive report by Standard Chartered predicts that gold will more than triple to $5,000 an ounce because of a lack of supply, not just because of a surge in demand that most bullion bugs cite in their bullish calls.
“There are very few large gold mines set to commence operation in the next five years,” said Standard’s analyst Yan Chen in a report Monday. “The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold. The result, in our view, will be a gold market in deficit, even assuming flat growth in demand. With the supply-demand balance so out of kilter, we see the gold price potentially going to US$5,000/oz.”
Full story: http://www.cnbc.com/id/43396080
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