Gold price to hit $1600 this year

By Philip Haddon | 15:29:13 | 08 May 2008

The top US equity manager Francois Mouté believes the gold price should be 16 times the price of a barrel of oil and on a par with the price of platinum.

Speaking at Citywire's European Fund Selectors Forum in Zurich, Mouté (pictured above) emphasised the prospects for his holdings in gold mining companies by pointing to recent research into the historical price of gold. 'We have seen research which suggests gold should be 16 times the price of a barrel of oil,' the AAA-rated fund manager said.

He points out that the current price of an ounce of gold, $870, is only around seven times that of the oil barrel so the upside potential is considerable.

'I think we should see gold hit $1600 an ounce in the next 12 months,' the top performing manager of the ABN Amro US Opportunities fund says. He thinks that as a result the stock prices of his key holdings like Gold Corp could double or even triple, such is their current low valuations.

The gold price should also be on a par with platinum, he thinks, which is currently close to $2000.

Mouté is the chairman of Neuflize Private Assets, a subsidiary of Fortis Investments. He is the top ranked US equity manager in Europe over time periods of three months, one year, three years and five years.

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