Gold futures, which are now pursuing an 11th straight year of annual gains, will be worth $5,000 per troy ounce, according to an English financial institute.
CNBC states that's the gist of a report released on Monday by the Standard Chartered Bank of London, which attributes the benchmark price to a shortage of large gold mines. CNBC did not cite a time frame but said it is unlikely to happen within five years.
"The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold," the report states. "The result, in our view, will be a gold market in deficit, even assuming flat growth in demand. With the supply-demand balance so out of kilter, we see the gold price potentially going to US$5,000/oz."
The bank's opinion comes as a result of reviewing 345 gold mines throughout the globe. Annual gold production estimates project to be about 3.6 percent, the report states.
Economic reports with displeasing job news and developments have pushed up gold futures 3 percent within the past month, Reuters reports.
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