This is where I start sound like Ron Paul. (oh dear…)
This report via CNBC even raised my eyebrows a bit:
An exhaustive report by Standard Chartered predicts that gold [ GCCV1 1524.40 +8.80 (+0.58%) ] will more than triple to $5,000 an ounce because of a lack of supply, not just because of a surge in demand that most bullion bugs cite in their bullish calls.
“There are very few large gold mines set to commence operation in the next five years,” said Standard’s analyst Yan Chen in a report Monday. “The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold. The result, in our view, will be a gold market in deficit, even assuming flat growth in demand. With the supply-demand balance so out of kilter, we see the gold price potentially going to US$5,000/oz.”
The London-based firm is among the first to focus on the supply-side of the gold equation amid the many bullish forecasts out there on the metal. After analyzing 345 gold mines and 30 copper/base metal gold mines around the globe, the team estimates annual gold production will be just 3.6 percent over the next five years.
“They make a pretty compelling argument, especially when it comes to mine supply,” said Brian Kelly, head of Brian Kelly Capital and a ‘Fast Money’ trader. “Most analysis focuses on demand from China and India, which of course can disappear as quickly as it materialized.”
In some respects, this could be a good thing for those already invested; and in some ways this can be a bad thing. Because of there is a massive rush to buy, because of a blow up in the money supply; this could spell trouble for last minute buyers.
My suggestion to everyone who reads here, is to invest now to avoid the rush. Please, check out the links on the right, top sidebar on this blog. You mobile users will have to go your laptops to do that; or if there is a gold ad at the top, on your mobile device, click to take advantage of that offer.
Being smart, and buying early; can save much headaches later.
Update: This video here will give you some good reasoning as to why investing with Gold is such a good idea.