Why gold could hit $5,000

With turmoil overseas and energy prices on the rise, investors are worried. They're worried about geopolitical risk. They're worried about a falling dollar. And they're worried about inflation becoming entrenched as the Federal Reserve continues to administer its cheap-money medicine despite signs of inflation.

As a result, gold is on the move again. For much of last year, gold moved higher over worries about Europe's debt crisis and a "double dip" recession in the United States. Prices fell into a funk in the fall, though.

Now, a new set of concerns has gripped the hearts and minds of investors. Fear has returned.

And the yellow metal again set new highs this week, closing on April 21 at $1,503.80 an ounce.

So how high can it go?

Believe it or not, some analysts are calling for prices to move close to $5,000 -- not immediately, but sooner than you may think. ...

This is because, according to the folks at Standard Chartered Bank, gold is moving into a new "super-cycle" as a number of structural factors -- including consumer demand from Asia and tepid growth in supply -- combine to push prices higher. The team, led by Dan Smith, is looking for prices of $2,107 an ounce in 2014 as its base forecast.

The team's members see the potential for much more. In their words, "statistical modeling suggests a possible 'super-bull' scenario of gold prices rallying up to $4,869 in nominal terms by 2020." ...

via Why gold could hit $5,000 - 1 - precious metals - MSN Money.

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