China Mineral Company is pleased to report record breaking gold future values. The metal reached an all-time high of $1,069.70 an ounce in New York, toppling its previous record established on Oct. 8. Gold is on course for a ninth straight annual gain. The price has advanced 20 percent this year, while the dollar has dropped 6.8 percent against a basket of six major currencies, touching a 14-month low today.
Tad Brooks, senior partner at the China Mineral Company, was optimistic about the future of gold prices. He sees gold doubling or tripling in price in the next two to three years–not only because of continued quantitative easing and mounting budget deficits but also because increased gold investment is a global phenomenon. “There’s rising anxiety about budget deficits, U.S. dollar weakness, inflation and the staying power of recent stock market strength. This is driving investors to gold either as a hedge, as insurance, as a diversifier or because they don’t trust the government,” Brooks explained.
China and the rest of the globe have taken keen notice. Most notably, world central banks recently switched from being net sellers to net buyers of gold. China has the sixth-largest gold holdings, after the U.S., Germany, the International Monetary Fund, Italy and France.
