Bank Predicts Gold Price Will Triple

The gold price will keep rising and possibly approach $5,000 an ounce in the next decade, according to a new report, “In Gold We Trust,” published June 14 by Standard Chartered Bank.

“Our research takes a bullish view on gold,” the report said. “The gold market will be under deficit for the next five years.”

As with similar outlooks for the diamond industry, the Bank argued that the growing desire for gold, particularly “insatiable” demand from China and India, will likely outstrip supply in the coming years. It noted that the mining industry “has done little” to bring on new gold mines and that the metal’s production is likely to grow only 3 percent over the next few years.

In addition the central banks have gone from being net sellers to net buyers of gold.

“Gold growth will be limited, which will continue to fuel the gold cycle,” the report concluded. “We believe demand will be driven by continued growth in per capita GDP in China and India, a weak U.S. dollar and high inflation, which have fuelled doubt in the creditability of paper currency.”

At press time, gold was trading at $1,530 an ounce.