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Scarcity of major new gold finds, jewellery demand bullish for gold - Clem Sunter
In an interview on Radio 2000 @ 18:10 on 04 December 2006
[miningmx.com] -- There are a host of fundamental reasons to be bullish on the gold price, former Anglo American director and business strategist Clem Sunter said on Monday.
"I’ve been consistently bullish over the last few years, because people aren’t finding great big new deposits like they used to," Sunter said on the Moneyweb Power Hour week-nightly radio show.
The gold price shot up to a 26-year high of $730 in May before pulling back sharply. The price has risen to around the $640 level. Some market watchers are forecasting a fall in the dollar's value and see gold offering an investment safehaven, which will push it higher again.
"It seems to be just a whole series of small open-pit mines, and so I’ve been bullish on the basis it’s just harder to discover new gold deposits, and jewellery demand is increasing," he said.
"And, yes, with China and India
growing, I think that we’re moving into a genuine scarcity of gold. So for fundamental reasons, I’m bullish on gold," he added.
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