As the United States economy continues to struggle and the sovereign debt crisis in Europe continues, some forecasts for gold and silver prices are highly optimistic.
Newedge USA LLC predicts that gold prices, which right now are hovering around $1,600 per ounce, will soar to $1,800 per ounce by year’s end, reports Bloomberg. The Paris-based brokerage firm also predicts that silver — which has touched nearly $50 per ounce this year — will reach $70 per ounce by the end of 2011.
“Gold is an excellent hedge in troubled times,” Mike Frawley, Newedge’s global head of metals, told the news source. Frawley predicts that demand for both silver and gold will be “very strong long-term from Asia, and the economic trend in the West is improving.”
Standard Chartered Plc. is also bullish about the future of gold, predicting that the yellowish metal will reach $5,000 an ounce by 2020, in large part due to increasing demand in India and China, according to Bloomberg.