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Sunday, December 25, 2005

2006 Gold Price Predictions & Forecasts

James Turk, the founder of GoldMoney.com, and expert on gold was on Canadian Television this week predicting the gold price would hit US$600 in the first quarter of 2006, and US$900 before the end of 2006.

Bill Murphy of GATA.org (Gold Anti-Trust Action Committee), predicts the gold price will reach US$1,000 an ounce by the end of 2006.

When considering these gold price predictions for 2006 it is worth keeping in mind that in today's $ based on inflation gold would have to hit $2200US to be equal with the all time high of $875 reached in 1981.

Newmont Mining's President Pierre Lassonde has publicly declared he expects prices to be around $525 in January 2006. Newmont's president said gold "may rise to more than $1,000 an ounce in the next five to seven years as demand growth driven by Asia outstrips global supply."

Now for some Top Financial Firms Gold Price Predictions for 2006

The main stream media seems to let these "Top" Financial Firms get their predictions for the gold price wrong time and time again without saying anything. Lets see how they go in 2006, considering the gold price recently hit $540 US.

UBS raised its 2006 forecast for gold to $520. UBS said in a report in the Australian Investment Review "Gold's fundamentals also look stronger than previously expected, as supply and demand fundamentals and investment demand all appear stronger than previously anticipated."

Merrill Lynch has upgraded its gold price forecasts by 19% to US$525/oz in calendar 2006, as reported by Reuters in an article titled Gold seen marching into 2006 with fanfare,

Maquarie has increased its gold price forecast by around 8% to US$516/oz. for 2006, as reported in the Australasian Investment Review, in an article titeled, Macquarie Upgrades Commodities Prices (Again).

J.P. Morgan Securities have lifted its long-term gold price forecast to $500 an ounce from $450, with an average price of $558 in 2006, as reported by Reuters in an article titled Gold seen marching into 2006 with fanfare

Barclays Capital expects the gold price to average Dollars 465 in 2006 before falling to Dollars 450 in 2007 and Dollars 440 in 2008. Kevin Norrish, head of commodities research at Barclays Capital, said "We don't believe the current rally is sustainable. There is no shortage of gold and we don't see any evidence that central banks are going to start increasing the amount of gold in their reserves."

Stephen Briggs, economist at SG Corporate and Investment Banking, has forecast average prices at $515 in 2006 and $550 an ounce in 2007, as reported by Reuters in an article titled Gold seen marching into 2006 with fanfare

Kevin DeMeritt of goldcentral.com provides more gold price predictions for 2006.

Please post your own gold price predictions and forecasts for 2006 as a comment below.

15 Comments:

Anonymous Anonymous said...

Due to increase demand and lower production I believe that Gold will hit $750 US by the end of 2006.

9:19 PM  
Anonymous Anonymous said...

what goes up must come down

9:08 AM  
Blogger Mover Mike said...

Gold will go to $750 per ounce. It closed on Friday at $516.60.

Silver will go to $13 per ounce. It closed on Friday at $8.80.

Oil will trade at $75 per barrel or higher. It closed on Friday at $61.

The Dow Jones Average will hit 9000. It closed the year at 10,717.50.

Mover Mike

11:44 AM  
Anonymous Anonymous said...

gold will hit $1000 in a couple of years. skeptics will look back over at gold bug's prediction with regrets. meanwhile, it's a long-awaited party time for gold bugs.

3:51 PM  
Anonymous Anonymous said...

Gold prices will fall, as the housing market is heading to a ouchie crash. The 1979 comparison is invalid since oil peaked in 1979. On the otherhand, oil has already peaked in U.S. at $70 a barrel and unless Bushler invades Iran, will only go down, taking with it prices of most other commodities including Gold.

Hence, I disagree with other analysts. Gold price will go down or remain at this level for the rest of 2006 and will go further down for the next 5+ years.

6:25 AM  
Anonymous Anonymous said...

up, up and away.... GO gold!

5:33 PM  
Anonymous Decebal said...

as long as demand over supply is high then it can only go up. but as far as gold for jewellery there must be a point it affect affordability and could weaken demand eventually.
the chinese and russians also want to increase holdings.
just woundering reading about the central banks lending 10000 tonnes of gold and unable to get it back and supposendly manipulating the gold price over so many years,
with it's short positions on gold price could the chinese bankrupt the US central banks with it's wanting to increase it's holding by 1900 tonnes.

well it can only go up but how high who knows.

4:41 AM  
Anonymous Vikram Mehrotra said...

I think that the gold prices will remain at an average of $530 as i don't see any more demand or buying of central banks. But I think that Hedge funds may keep this bull run ongoing......We have to keep a close watch on US Dollar and demand fabrications......

5:37 AM  
Anonymous Anonymous said...

US dollar is going further into the tank. Gold, silver, even grains will go up....lets not forget the mouth must be fed too.

May the GOLD be with you.

8:22 PM  
Anonymous Anonymous said...

Ok all you gold bugs out there,we should kow that if the market continues its trek as it has in my opinion the price of Gold will defintley reach $800. by years end.There will come to light in my view, more fundamentals that are not even on the map yet. This in turn will be again be extremely bullish for Gold & Silver.( i mean many factors that are unpredictable such as a world war, more earthly desrtuctions,world disease terrorism and the rhetoric that is usally associated with bullish atmosepheres in the market place) Since the Silver ETF ARE going to be allowed to exchange hands in the near fututre...........just watch the price of Silver SKYROCKET to possibly $20 by years end ! Any one who follows these markets very closely and has a little bit of sense and understands the fundamentals can easily make these buillish predictions.This is going to be the GREATESR BULL MARKET this wrold has ever seen !

Hope your all in it !

4:34 PM  
Anonymous Anonymous said...

Since 1971 the fed has been printing dollars at an ever increasing rate; can we really believe that the dollar is the ultimate store of value and not gold. $1000/oz by year end then blue sky.

7:01 AM  
Anonymous Dave said...

I predict that gold has just begun its bull rally. Based on inflation alone, gold is currently under valued at $600 per ounce in 2006. The high of $850 in 1981 is $2200 in todays (2006) dollars. If it were overvalued by 100% in 1981, that would equate to $1100 in todays dollars. Let the corporations print their sotck shares and try to convince the public that the PE's are accurate, I'll go for the gold that is limited to a total world mined amount that is equal to a square cube of half a tennis court. The punidts are scourned, have they not heard of the basics of supply and demand? Iraq was merely a steping stone to Iran. And you think that oil is expensive now? Hold tight for the greatest run on metals ever! Or, you can keep holding your currency, worth nothing more than the paper and debt that it is based on.

8:44 PM  
Anonymous Imran said...

Gold hype can be contributed to high inflationary pressures from low dollar to high demand for commodities. actually forcast is not enough, it is reality that gold will hit 1000$ mark soon enough. believe me increase in population and overall low GDP growths around the world will further accelerate the inflation.

7:38 AM  
Anonymous Anonymous said...

up, up and away.... GO gold! YEAH! i second to that!

5:59 AM  
Anonymous Anonymous said...

It better go up. i hope to get a dodge viper with my spoils of riches ;o)

3:13 PM  

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