GFMS, one of the world’s foremost metals consultancy firms, reiterated its bullish outlook on gold bullion due to a myriad of economic and political factors.
At Paydirt’s Gold Conference in Perth, Australia on Wednesday, GFMS World Gold managing director Paul Burton stated that ”We’re probably going to see the $1,500 per ounce mark broken and certainly the $1,600 mark is within range this year.”
Burton also noted that GFMS is “still quite optimistic” on the yellow metal over the next two years.
He went on to say that the firm’s outlook “really depends on how the major economies of the world, how the governments, react and try to keep growth within our economies…How you see governments respond to the economic crises around the world and if they continue with their quantitative easing, it is going to have a major impact on investor demand and where the gold price is going.”
If central banks in the world’s developed economies were to tighten monetary policy, Burton acknowledged that other asset classes would likely become more attractive than gold.
However, even in a worst case scenario for the yellow metal, Burton does not see gold falling below $900 per ounce. “We don’t certainly see the gold price going down to the 2001 $250 an ounce level again.”
