“Johannesburg - Investment in gold will be the driver to push the price to $1 100 or more this year, further damaging an already battered jewellery sector and increasing scrap supplies into the market. Prices will come off over the next five years as that investment dries up and retreats, says GFMS CEO Paul Walker.”

Ahhh, GFMS, always ready to be available to diss gold. After all that’s the type of gold business they’re in folks. But wait a minute, he did say 5 years though. Paul must have to hedge his bets. After all, what if gold hits $5000 in 3 years? I guess he could safely say that after reaching such unexpected heights, it would “come off”.

They’re pulling out all the stops here folks. Paul “would be extremely surprised” if the Central Bank Gold Agreement was not renewed again this Fall. Paul reminds us that the jewellery sector will take a pounding as buyers stay out of the market until prices come back down. He says a “wall of scrap” is coming into the market from everywhere “sounding an alarm”. Whoops, he then says that investment demand may go into the year 2010. Gee, that year keeps coming up. Get this: “He told an anecdotal story of JP Morgan advising a client in Japan that it was restricting silver storage to one container per day. "There's a wall of silver coming back into London," he said.” That screams of panic. Maybe the Comex would like to know that.

Paul then goes on to reassure us all that mine production will rise and that central bank gold sales will remain weak (he didn’t mention that they are depleted of it and that some are already buying).

See: http://www.fin24.com/articles/defaul...