Four reasons for gold to hit $1,000 an ounce

The gold price has doubled in the past three years. But Lord William Rees-Mogg expects it to go much higher. He has four good reasons for believing that the gold price will double again by the end of the decade, to more than $1,000 an ounce...

The gold price has doubled in the last three years. It has now settled at around $550 an ounce, after some profit taking. The World Gold Council expects that it will go to $600 an ounce by the end of the year. I am never sure about such short term market predictions; it is always hard to get one's timing right.

Yet the long term factors which have caused the rise in the gold price are still in place. It seems likely that the gold price will continue to rise; another doubling of the price in the next three to five years is entirely plausible on the known facts. I have expected the price to go above $500 an ounce since the rise started and I now expect it to reach $1,000 an ounce by the end of the decade. Then we can ask whether the main factors are still in place.

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William Rees-Mogg was Editor of The Times from 1967 to 1981. He served as High Sheriff of Somerset and was Chairman of the Arts Council of Great Britain. He was the father of the politicians Sir Jacob and Annunziata Rees-Mogg.