The gold price moved sideways this week, trading at just under $1,600 an ounce, continuing the downward trend from the metal's 2012 peak at the end of February. However, Ronald-Peter Stoeferle of Erste Group Research thinks it may be about to make another major upwards move.
The reasons are twofold. First there's the inflationary increase in the monetary base since the start of the financial crisis and secondly "financial repression" (negative interest rates) is increasingly being seen as part of the solution. He thinks the price could rise to an eye-popping $8,300 per ounce.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Government launches full review of parental leave and pay – what could it mean for you?The government wants parental leave to be fairer - will its shake-up fix the widespread problem for families?
-
Nationwide: House prices see biggest monthly fall in over two yearsUK house prices dropped by 0.8% in June, according to Nationwide. We reveal the top-performing and worst-performing regions
-
Gold could stagnate for several years – but don’t make Gordon Brown’s mistakeFeatures The price of gold is going nowhere fast. Like Gordon Brown did 20 years ago, you may be tempted to sell. But, just as with Brown, that would be a big mistake. Dominic Frisby explains why.
-
A coming gold surge?News While gold may well climb higher in the short term, a price surge could be years away.
-
Why we still back goldFeatures When we first started talking about gold, no one was remotely interested. But now everyone gets gold. So since it's risen almost seven-fold since we bought it, is it time we changed our tune?
-
Gold investors cash in as rates tumble
Features In the last two months alone, the Bank of England has slashed the returns paid to savers quicker than at any time since 1858. Those investors holding gold, on the other hand, are laughing, says Adrian Ash.
-
A “table banging” opportunity to buy gold
Features Any internet search will reveal a wealth of options now available to retail investors wishing to buy gold, but which one's right for you? Adrian Ash looks at the top three ways to get into gold.
-
Why gold's still the best bet on a weak dollarFeatures The gold price averaged an impressive $666 in May and it's had a fantastic June so far. Meanwhile, paper currencies are scrapping over which can lose value the fastest. So why aren't investors catching on?
-
Could gold ownership be outlawed?
Features In the past, governments have tried massive interest rate hikes and the outlawing of gold ownership in order to protect their currency. But what can be done this time round to restore investors' faith in cash?
