Gold to Top $2K an Ounce by 2014

Asian economies behind the dramatic climb, report says
By Mark Russell,  Newser Staff
Posted Apr 12, 2011 1:10 PM CDT
This undated Washington County Sheriffs office handout photo shows one of several gold nuggets stolen from the Rice Northwest Museum of Rocks and Minerals in Hillsboro, Ore. on April 17, 2010. The collection...   (AP Photo/Washington County Sheriff)
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(Newser) – Maybe Glenn Beck has been right about gold all this time—a new report says the precious metal could top $2,100 an ounce by 2014, and could come close to hitting the staggering $5,000 mark by the end of the decade in "a possible ‘super-bull’ scenario," reports the Telegraph. The key is less economic problems in the West and more continuing growth in the East, according to a report by the Standard Chartered Bank.

Rising demand for gold in China and India will be the force behind the bull run: Incomes in those two countries are expected to rise to 30% of the US level by 2030. "Assuming that the relationship between rising income levels and gold holds, gold prices could reach $4,869 by 2020," the report said. But higher mine production in the coming years "should overwhelm demand growth beyond 2014."

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