Gold Value to Surge on Shortage in 2009: Expert

". . .the cost of the precious metal may rise to $1,500 (£1,023) per ounce in the months to come."

The value of gold is expected to move up to $1,500 (£1,023) per ounce in the coming months on shortage of precious metals because of stimulus packages being introduced by the governments globally, said an expert.

According to Charles Gibson of Edison Investment Research, the cost of the precious metal may rise to $1,500 (£1,023) per ounce in the months to come, the Daily Telegraph reports.

This, he claimed, is due to the financial stimulus packages being introduced by governments around the world, which are creating a shortage of gold.

Currently, there is a 500-ton shortfall of the metal, he told the news source, adding that this is the result of financial institutions no longer leasing gold from central banks, which in turn has slowed supply.

Consequently, investors are turning to physical gold rather than futures in the metal, he stated, with supplies of gold bars becoming limited due to an increase in purchases.

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