Citigroup expects $ 2,500 per ounce of gold

Citigroup expects $ 2,500 per ounce of gold

According to a recent study by Citigroup, due to fears of sovereign debt in Europe and the debt crisis in the United States, the price of gold could rise to $ 2,500 per ounce, or even much higher, to $ 5,000.

Gold is now trading above $ 1,600 an ounce as investors continue to move toward safe and sound assets. Citigroup analyst Heath Jansen compares the current seemingly unshakable rise in gold to the 1970-80 bullish market.

Jansen pointed out in his letter to clients, “When investors are thirsty for gold, the price of it tends to grow exponentially, and this is inherent only in gold.”

“Although non-ferrous metals are often guided by market analysis on the principle of ‘supply minus demand = stock’, gold has been in the vaults of central banks for decades, so this formula does not apply to gold. Central banks sell gold to his lust.

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