Gold: Think Long-Term
The latest from Jeffrey Nichols, Senior Economic Advisor to Rosland Capital -
Although I expect gold prices to rise sharply by the end of the year, possibly even testing gold’s all-time high near $1,924 an ounce, I’m the first to admit that short-term forecasts are highly uncertain.
I’m much more confident about the long-term prospects for gold. Indeed, looking out towards the end of the decade and beyond, I believe the metal’s price will rise to a multiple of the currently prevailing price.
As the Indian and Chinese economies continue to expand, creating new wealth and growing middle classes, demand for gold in these and neighboring countries will surely expand. At the same time, official demand from a growing number of central banks will also continue to grow as central bank reserve managers look for alternatives to the U.S. dollar and the much-tarnished euro.
As physical demand for gold rises, w...