New Orleans CityBusiness – Blanchard and Co., a precious commodities and rare coin brokerage in the Central Business District, has bullishly forecast gold prices climbing steadily to $300 an ounce,then $400 and $500.<\/p>\n
With gold futures for April delivery topping $560 Feb. 24, Blanchard\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s new prediction still raises eyebrows \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d $800 before year\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s end.<\/p>\n
Blanchard CEO and President Donald Doyle Jr. said the precious metals market is on the cusp of an upswing.<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWe\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2re in the middle of a cycle. The whole commodity complex has declined by two-thirds over a period of 20 years,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d Doyle said. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe price of gold and the price of oil in the latter part of the \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a290s hit 20-year lows so you had an oversold market that was ready for a recovery. And then you add to that the fact there\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s a tremendous amount of demand coming from countries like India, China and throughout Asia.<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIt\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s obvious no market goes up forever but it appears we\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2re just at the beginning of a long bull market. Most analysts predict the market probably has a decade to run before it turns in the other direction.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n
Doyle said lengthy cycles are the norm in the precious commodities market because production rises to meet the increased demand when prices go up. As supply increases, the market and prices stabilize and then go down.<\/p>\n
Neal Ryan, Blanchard director of research, said hedge funds created some false increases in gold prices through speculative buying, but he sees an upside to the tumult.<\/p>\n