PL: Gold could hit $3,000/oz over next 3-5 years: RAB Capital
The price of gold could go to $3,000/oz over the next three to five years, according to RAB Capital executive director and president Phillip Richards Monday.
Richards said that he suspects that the price of gold will be kept "higher for longer" as it "suits a lot of people."
He was referring to central bank involvement. Central banks are now net buyers -- the higher the gold price the more cash on a government's balance sheet, he said at the Sachs Associates Precious Metals CEO Forum in London.
The executive director said that gold will make another inflation-adjusted high with the bulk of buying interest coming from Asia -- specifically, China. He also said that reallocation of assets by pension funds could see fresh buying interest.
This view was backed up by Eily Ong, investment research manager at the World Gold Council. Even as little as 1% additional pension fund interest could lead to "fresh buying opportunities," Ong said.
