...Credit Suisse warned Monday that supply and demand factors “could trigger a quantum upward change in the gold price”. David Davis, a research analyst at the bank said: “Our studies indicate that the dynamics surrounding the gold supply and demand have begun to change inexorably towards a diminishing supply of gold and increasing investment demand, which will ultimately impact the gold price.” The prediction is based on the assumption that “long term global gold production will begin to decline as the diminishing number of new reserves fail to compensate for dying mines”.
We would concur with Credit Suisse in this regard and believe that gold will experience a quantum jump in the coming months. A quantum upward change or jump is a sudden spectacular advance in the price and one which dramatically skips over intermediate stages. This could result in a gold price over $2,000 per ounce in a short period of time.