“Is the decade-long bull market in gold finally over? Probably not, according to observers who say short-term traders are keeping a false lid on prices and that rising production prices will lift the metal higher once more.
MetalMiner reported major exchange-traded fund (ETF) providers offer a line of defense in the ultimate direction of gold. They hold tons of gold around the world.
Nevertheless, analysts at banks such as Goldman Sachs, Credit Suisse and Societe Generale have recently trimmed their price forecasts and claimed the gold bull market may be dead.
“The major ETF providers are understandably not having any of this argument, saying it’s the action of a limited part of the ETF investment community made up of hedge funds and short-term players” MetalMiner stated. “Long-term players will keep the faith the Exodus will soon abate.”
Bruce Cook, an exploration analyst, estimated recently the average price to mine gold has risen from $300 to about $1,500 per ounce since 2000.
“New viable mines are few and far between, yet mining costs are relentlessly rising. This alone will provide a floor to prices in the medium term,” MetalMiner predicted.
Some big hedge fund managers, like George Soros and Steve Mandel, have recently become more pessimistic about gold’s prospects. But rival hedge fund manager John Paulson has been staying the course as a gold bull, according to The Wall Street Journal.,,,”
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