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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