Oyu Tolgoi Partners End in the Red
Meanwhile, Kitco analyst Jon Nadler's longer-term forecast for the metals sees gold price averages of $900 an ounce over a one-year period, down to $850 an ounce over a three-year period, and copper prices rising from $7,500 a ton over a one-year period to about $8,500 a ton over over a three-year period.
Nadler said that gold investment demand could abate with prices returning to a more balanced relationship between the yellow metal's prices and its fundamentals as the financial crisis ebbs and the European sovereign debt situation resolves itself. "We have been in crisis mode since late 2006 and nothing goes on forever," Nadler pointed out. "Absent a crisis-driven safe-haven and mainly speculative demand, gold's fair value lies in that $800 to $900 range."
Meanwhile an uptrend in copper prices will of course be dependent on the eonomic recovery, which "while not yet out of the 'fragile' state at the moment, will gain traction and demand for base metals," Nadler explained. That said, "a housing recovery means good news for copper."
These days, some 400 pounds of copper are estimated to be used in building the average home.
-- Reported by Andrea Tse in New York
Nadler said that gold investment demand could abate with prices returning to a more balanced relationship between the yellow metal's prices and its fundamentals as the financial crisis ebbs and the European sovereign debt situation resolves itself. "We have been in crisis mode since late 2006 and nothing goes on forever," Nadler pointed out. "Absent a crisis-driven safe-haven and mainly speculative demand, gold's fair value lies in that $800 to $900 range."
Meanwhile an uptrend in copper prices will of course be dependent on the eonomic recovery, which "while not yet out of the 'fragile' state at the moment, will gain traction and demand for base metals," Nadler explained. That said, "a housing recovery means good news for copper."
These days, some 400 pounds of copper are estimated to be used in building the average home.
-- Reported by Andrea Tse in New York
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