Indiana Grain Company, LLC

Posted: 07/18/10

By: tomgrisafi

One of Europe's top financial analysts and fund managers, Joe Foster of Van Eck Associates, has forecast the price of an ounce of gold could rise to $2000, $3000 or even higher within the next few years.

Foster manages the Falcon Gold Equity fund for Falcon Private Bank in Switzerland, which has shown a return of 438% over the last 10 years.

In a meeting with investors this week, Foster said, "This bull market has been going on for nine years and it could very well go on for another nine years."

With the world economy still slumping, investors are starting to realize that the turnaround may not be just around the corner, as many people have thought in the past. This concern has caused investors to seek out safe havens for their assets -- and for many, that means gold.

While financial hardships are bad for the economy at large, they are generally good for the price of gold. "I have no problems with the gold price up around $2000 or $3000 an ounce in the next few years, or even higher than that," Foster said.

Even with the increased demand for gold, statistics indicate that mining production is not keeping pace. Given the lead time required to source new deposits and get a new mine up and running, it's quite possible that supply will not be able to keep up with future demand, which only drives the price even higher. This spells bad news for some, who may find it hard to buy into a rising market, but it's excellent news for investors who are wise enough to buy before the boom.