Gold bullion could 'easily' hit $2,000

Richard Davis, manager of the BlackRock Commodities Income Investment Trust, tells Robert Miller why demand for commodities will remain strong and how gold bullion prices could 'easily go to $2,000'. The respected commodity research firm SEB said in its 2012 preview: “Over the next 12 months we expect oil, copper, nickel and gold prices to move higher, while agriculture is likely to soften further. There are of course risks of a double-dip recession in the US, a hard landing in China and the disintegration of the eurozone, though we regard them as less likely.” Richard Davis, manager of the BlackRock Commodities Income Investment Trust, echoes SEB’s upbeat outlook. Speaking in the latest weekly Your Money Their Hands video he said: “At the moment, demand is reasonably weak, so I think that is a cause for concern. But, if we look longer term, demand growth is going to be strong and that will be driven by the likes of the Chinese economy. On the other side, supply growth will remain weak. That is good news for commodity prices going forward.”

Link...