The price of gold is currently $1,200 an ounce. What will be the price be in twelve months?
Think Thank Average prediction: $1,450
No panelist gave the sort of outlandish prediction for the future gold price that we have grown accustomed to seeing in the press recently – although one panelist did wonder if currencies around the world might soon return to the gold standard, a suggestion that was quickly shot down in flames.
“That would make South Africa overnight the richest country on earth,” said Andrew Neil, somewhat incredulously.
Gold is today seen as an anti-dollar hedge in many quarters, and its gains over the last two years are believed to have reflected the rising uncertainty of financial markets about both the dollar and the general global economy.
Certainly a price of $1,450 an ounce by May, 2011 - a rise of over $200 from today’s levels – would signal huge doubts about the health of the geo-economic system.
That said, $1,450 is cautious by comparison to the $3,000+ levels some reputed analysts have been calling.
Perhaps the gold ATM installed in Emirates Palace wasn't a daft idea.