A bit of research about the price of gold will break the $1600 per ounce by the end of this year, and will average $1500 per ounce for the next 5 years.
The current gold price, adjusted for inflation is still below the peak established in the early 1980s of $830 per ounce. Its current $1500 per ounce price, adjusted for inflation is sitting at $630 per ounce, less than 76% of the peak price.
So theoretically, there is another 33% increase to come from the current $1500 per ounce, if certain market and economic driven conditions occur.
Central Banks continue to increase their holdings of gold, to shore up their financial systems, with developing countries increasing their annual gold bullion purchases significantly to meet these targets.
A very important graph below shows that China has as little as 3% of their total reserves sitting as gold bullion, this is compared to the US and Germany which has 70% of their reserves sitting as gold bullion.
Even a small increase by the Chinese Reserve Bank to 10% holdings as gold bullion, due to the significant size of the Chinese economy, this means millions of ounces of gold are needed for this increase in gold holdings as a percentage of Total Reserves occurs.
These small explorers like AQD have excellent real estate in a region that is surrounded by multi million ounce gold deposits, with the price of gold expected to continue to grow! We just need to keep accumulating and giving them time to drill and increase their gold resource. Due to the $1500+ per ounce gold price, their share price will lift considerably.
My point is even a small deposit will mean a significant share price rise because of the incredibly high price of gold!
Cheers
Nectar
AQD Price at posting:
14.5¢ Sentiment: LT Buy Disclosure: Held
