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$1,000/oz
Posted: Mon, 30 Jan 2006
[miningmx.com] -- IT was no longer wishful thinking for the gold price to reach $1,000/oz, particularly if gold were to behave in line with the price appreciation of other metals.
So says John Hathaway, fund manager for Tocqueville gold fund. Writing for Gold Eagle, an on line publication, Hathaway said: " As the bull market [in gold] has evolved, so has my thinking.
"Four digits no longer seems like a stretch to me. Rather, it would seem that gold would be correctly priced at $1,000 just to catch up to other commodities like oil,
base metals, natural gas, and platinum," Hathaway said.
"We calculate that the market cap of all above-ground gold, including central bank reserves, equals about 1.4% of global financial assets. In 1934 and 1982, when investor stress reached extreme readings, that percentage was between 20 and 25%," he said.
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