Johannesburg, South Africa — MININGREVIEW.COM — 28 September 2010 – AngloGold Ashanti Limited “’ the world’s third-largest gold miner “’ is predicting that gold prices “’ already at record highs “’ could rise by between US$70 and US$100 an ounce annually over the next five years as demand from investors accelerates.
“You can add about US$70 to US$100 an ounce each year over the next five years,” AngloGold CEO Mark Cutifani told a teleconference.
Reuters reports that this forecast is slightly below other forecasts, including world no. 1 gold producer Barrick Gold’s prediction of US$1 500-plus per ounce next year.
Cutifani said fast-rising gold prices were outpacing increases in average global production costs, now at around US$950 to US$1 000 an ounce due to higher investment interest in both gold equities and direct investment in bullion via exchange-traded funds.
Spot gold hit an all-time high of US$1 300 an ounce yesterday, extending a two-week rally on doubts of a global economic recovery soon. Investors typically scoop up more gold when other investments, such as stocks and currencies, look shaky.
The price of gold has risen by 18% so far this year. AngloGold shares have risen by more than 4%, compared with a 3.1% rise in Johannesburg’s blue-chip Top-40 index.