Pssst - wanna buy some gold?

16-Jun-2011 A lack of supply will drive gold to $5,000 before it’s all over, or so say the writers of a report released yesterday from the bank, Standard Chartered.

“There are very few large gold mines set to commence operation in the next five years,” claims the report. “The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold.”

Even if demand doesn’t grow, the falling supply makes a rising gold price a lead-pipe cinch, Standard Chartered says.

Standard Chartered aren't the only people with a target of $5,000 in mind. Incidentally. Doug Casey also says $5,000 is his ultimate target once gold reaches the “mania” stage of its bull market.

A lot of readers think they have missed the boat but if these estimates are correct gold will double in price and then treble in price before the show is over. Is that possible? I believe it is. I started buying gold at £200 an ounce, then £300, then £400 - all the way up to the current £940. And that is in less than ten years. I have absolutely no doubt that gold will do it again. China is the biggest driver. Their current bank gold reserves are pitiful when compared with other countries and they have openly announced that they intend to do something about it. That's music to my ears.

Next week I am expecting a delivery of gold Sovereigns if anyone is interested in adding to their stash. Sovereigns currently sell at a 15% margin with most dealers but we will have them available early next at spot price plus 6%. That's an 8% saving on the usual price and remember - there is no Capital Gains Tax on gold Sovereigns in the UK. CGT is currently at 18% and I reckon that will go up soon. If you are interested just drop me an email for more details.




 

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