AngloGold Ashanti, the world's third-largest gold miner, last Tuesday, forecasted that gold prices already at record highs, could rise by between $70-$100 an ounce annually over the next five years as demand from investors accelerates.
"You can add about $70 to $100 an ounce each year over the next five years," AngloGold Chief Executive, Mark Cutifani, told a teleconference.
The forecast is slightly below other forecasts, including world Number 1 gold producer, Barrick Gold's prediction of $1,500-plus next year.
Cutifani said fast-rising gold prices were outpacing increases in average global production costs now at around $950-$1,000 an ounce due to higher investment interest in both gold equities and direct investment in bullion via exchange-traded funds.
Spot gold hit an all-time high of $1,300 an ounce last Monday, extending a two-week rally on doubts of a global economic recovery soon.
Investors typically scoop up more gold when other investments, such as stocks and currencies look shaky.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, stood at 1,300.521 tonnes as of Sept 24, just shy of the record 1,320.436 tonnes held on June 29.
The price of gold has risen by 18 per cent so far this year.
AngloGold shares have risen by more than per cent, compared with a 3.1 per cent rise in Johannesburg's blue-chip Top-40 index.
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