Gold forcast per Banque Agricole du France

We are raising our mid-cycle gold price estimate to USD900/oz from USD750/oz
and see the possibility of a spike to USD2,000, or higher. Covert selling
(via central bank lending) has artificially depressed the price for a
decade. "Central banks have 10,000-15,000 tonnes of gold less than their
officially reported reserves of 31,000. This gold has been lent to bullion
banks and their counterparties and has already been sold for jewelry, etc.
Non-gold producers account for most and may be unable to cover shorts
without causing a spike in the gold price. "There is a supply deficit in the
gold market of around 1,300 tonnes per year before any central bank selling
and perhaps 700 tonnes per year after 'official' sales but before covert
selling. This compares with world gold mine output of only 2,500 tonnes per
year. Some central banks, notably Russia, are starting to buy gold.

Re: Gold forcast per Banque Agricole du France

Slim Bastard wrote:

> We are raising our mid-cycle gold price estimate to USD900/oz from USD750/oz
> and see the possibility of a spike to USD2,000, or higher.

That's pretty much what I predicted too (cf. my previous posts on this
topic).

$1,000 per ounce (with a wide error band around that) is my target for
this cycle--another 75% rise from current levels.

And the best mining stocks should offer percentage rises much better
than that.


--
Steven D. Litvintchouk
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