Gold, Silver Prices May Fall After 2009: GFMS

Source: Bloomberg (10/12/07)

"I'm not a believer that prices just go up forever,'' Klapwijk said in an interview. "There's going to come a point where you're going to hit the top of the market," said Philip Klapwijk, executive chairman of London-based research company GFMS Ltd.

Gold and silver prices probably will rise for the next two years before falling as industrial demand declines, said Philip Klapwijk, executive chairman of London- based research company GFMS Ltd.

Gold may trade for an average of $770 an ounce in 2008 and silver may average $14.20, Klapwijk said today at a conference in Veracruz, Mexico. This year, gold for immediate delivery has averaged about $669 an ounce and silver has averaged $13.12.

"I'm not a believer that prices just go up forever," Klapwijk said in an interview. "There's going to come a point where you're going to hit the top of the market."

Gold is headed for its seventh straight annual gain and has more than doubled since the end of 2002. Falling industrial demand, coupled with slower global economic growth and fewer buybacks of gold contracts by mining companies, may cause prices to weaken after 2009, Klapwijk said.

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Source: Streetwise Reports (07/13/2020)

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Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."