News Header


Deutsche Bank: Gold May Rise to $2,000 Per Ounce

Release Date: 
Tuesday, May 10, 2011

Gold prices could surge another 30 percent by January as investors seek to protect themselves from "economic uncertainty," according to commodity traders at Deutsche Bank AG.

"I'm bullish on gold despite its current levels," said Hal Lehr, Deutsche Bank's managing director for cross-commodity trading. "It could reach $2,000 dollar an ounce in the next eight months."

Gold prices were increasing towards a third daily rise on Tuesday after a falling dollar helped prices for the precious metal, while concern about Greece's debt crisis also lent support. Investors are watching China's inflation data, due Wednesday, which may provide insight on whether China's central bank will tighten monetary policy further after a string of rate increases.

Gold priced in euros rose by 0.3 percent, an indication of investor fears over Greek debt. Euro-denominated gold rose by nearly 40 percent last year, when investors fled euro-priced assets as the region's debt crisis unfolded. "Gold prices would profit from any escalation in concerns over Greece's debt sustainability," said UBS analyst Edel Tully.  "In this climate it is also worth paying attention to the euro price of gold," she said.

The price of gold rose for six consecutive weeks through April 29 in part due to gold's role as a hedge against inflation for investors and governments. Central banks in China, India and the European Union, among others, have increased interest rates in recent weeks as policymakers have sought to control consumer prices with tighter monetary policy.

(Sources:  "Deutsche Bank Sees Gold Surging as High as $2,000 as Soros Pares His Bets," Bloomberg, May 10, 2011 "Gold Rises Above $1,509 as Dollar Retreats," CNBC, May 10, 2011; "PRECIOUS-Gold inches lower after oil margin hike; Greece aids," Reuters, May 10, 2011)

News Footer


†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.