Morgan Stanley: Gold may be over $1000 an ounce in 2011

According to Morgan Stanley, gold may climb above $1000 an ounce in 2011 as global mine output drops, mining cost rise and demand increases. Mining production actually peaked in 2001 and has since been declining.

Since global markets concern about deflation, gold has been corrected from its record high at $1,032.70 an ounce in March 17; to $714.45 an ounce at 3:22 p.m. Singapore time today.

Meanwhile agriculture commodities will be the least affected by slowing global growth compared with industrial metals and energy, and corn and soybeans are ``oversold by far.

ETFs/Stocks :

SPDR Gold Trust ETF             GLD  $70.50  +0.50 (0.71%)
Market Vectors Gold Miners ETF  GDX  $19.87  +0.47 (2.42%)

Related Posts :

[Video] Metals Outlook: Gold Rising on China Stimulus Plan

Sources :

Bloomberg: Gold May Top $1,000 in 3 Years, Morgan Stanley Says (Update2), November 13, 2008 02:47 EST

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