Southampton--August 11, 2011--In 1920, the price of gold was $20 per ounce, in 1950 $34 per ounce, and in 1970 $36 per ounce - slow growth - an average of 32 cents/ounce increase per year over fifty years. Almost linear growth. Stable.

1970, though, was a significant year for gold prices - arguably the year in which gold price rises started to grow exponentially. In mid 2011, the gold spot price has just touched $1,800 an ounce. How far will it go?

In late 2010, Robert Zoellick, president of the World Bank suggested that a return to the gold standard should be considered. China last week suggested that in view of the US credit rating downgrade by S&P, a new world reserve currency might be required. Calls for a return to the gold standard are increasing daily. Could it happen? As attractive as it may seem in some quarters, governments would not like it.

James Marinero has analysed gold prices in his book ‘Gate of Tears’, and forecasts prices reaching $3,500 by 2016. Before then some significant falls (as happened in the 5 year setback 1998-2003) are likely. Since 2010, prices have risen 50%. It cannot be sustainable - or can it?

In ‘Gate of Tears’, new production sources using genetically engineered bacteria are brought on stream, and manipulation of the gold markets takes place. In fact, some mining companies are already using engineered bacteria for improving yields as environmental concerns have made heap leaching illegal in many countries. The growth of China and the historical Asian affinity for gold leads to massive buying as China's dollar reserves are switched to the yellow metal.

Could it happen? Maybe. Either way it is an intriguing story, bang up to the minute. Is it prophetic?

'Gate of Tears' is available now from the publisher wavecrest UK, from Amazon (paperback and Kindle), and from all good booksellers.

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Phil Marks
Managing Editor
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