Saturday August 11, 2012
Shortage sparks increase in gold price
THE price of gold is expected to increase by two-fold between the end of this year and beginning of 2013.
Perak Goldsmith Merchant Association president Low Wai Chee said this was because the quantity of gold that was being mined globally had decreased.
“A shortage in gold always sparks an increase in price.
“In the United States, an ounce of gold is about US$1,610 (RM4,999) at the moment.
“According to our forecast, the price will shoot up to US$2,500 (RM7,762) next year,” he told The Star.
Low said gold mines throughout the world were having difficulty in meeting global demand for the commodity, which was fast becoming exhausted.
“The global demand is about 5,000 tonnes annually while tin mines throughout the world can only extract about 2,000 tonnes,” he said, adding that the electronic industry was the largest consumer of gold.
“Gold is irreplaceable and its demand is still high.
“Although platinum is a good replacement for gold, its amount is less than gold,” he added.
Low said a time would come when gold deposits are so scarce that permits would be needed to purchase the precious metal.
“It will be an inconvenience to us dealers and other consumers in the future but it can’t be helped.
“We’ll just have to see what happens then,” he added.