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GMS Reports – Gold Prices Fluctuate Economist Predicts 'Gold prices could reach $850 per ounce'
NewswireToday - (newswire) - Point Roberts, WA, 12/20/2005 - Gold-MiningStocks.com Reports – As Gold Prices Fluctuate Economist Predicts “Gold prices could reach $850 per ounce” Projected decline of the U.S. dollar, deregulation in Asia, likely to pressure the price upward.
Gold-MiningStocks.com (GMS) an investor and industry news portal for the gold-mining sector, reports that a gold price per ounce of $850 is entirely possible in the months ahead. And gold exploration juniors are having trouble finding qualified personnel and equipment.
Martin Murenbeeld, chief economist of the Dundee Group of Companies with a specialty in gold, has no trouble believing the price of gold will reach $850.
He projected a decline of the United States dollar against the Euro and the Asian currencies. Other causes include the impending retirement of the baby boom generation; a need for re-deploying foreign exchange reserves in OPEC and Asian countries; deregulation; and growing personal riches in Asian countries.

Analyst Lawrence Roulston, editor of the newsletter Resource Opportunities, pointed out in an InvestorIdeas.com interview recently that the gold mining industry in general is producing about 80 million ounces of gold a year and it’s a challenge for the large mining companies to replace that many ounces.

The onus for replacing that gold is on the exploration juniors and one of them, Terry Tucker, president of Vancouver-based Strata Gold Corp. (TSX:SGV) says his firm is having trouble locating and hiring available drillers and drill equipment, as well as engineers to research and provide resource estimates.

Article Excerpt: Gold prices could reach $850 per ounce By John Hurst, Gold-MiningStocks.com December 2005

Gold prices may achieve historic highs in the coming months, aided by a decline in the United States dollar, only marginal increases in mine production and a steady deregulation of gold buying in the major Asian countries. This puts an estimated 2,000 junior gold exploration companies in an excellent position to attract increasing investment dollars from the major gold producers.

“The small companies,” Roulston said, “have always been the most successful explorers and generally, in any industry, it’s the small companies, the entrepreneurs, that make the discoveries and the innovations. A lot of the best mine-finding talent in the industry is in the hands of the juniors and there was a big move, from the majors to the juniors, back in that quiet period when the gold price was down and the big companies cut their exploration budgets.