Gold Bulls Eye $1,000 Bullion

If the experts are right, gold could be poised for another banner year in 2008.

Experts say they expect continued weakness in the dollar and robust investment demand, and that prices for gold could surge to above $1,000 an ounce in the next 12 months, according to a broad cross-section of professionals interviewed by TheStreet.com.

As with last year, everyone in the group sees a continuation of the historic bull run. But this time there is also a distinct bias toward favoring bullion and the bullion exchange-traded funds, such as streetTracks Gold Shares (GLD) and iShares Comex Gold Trust(IAU), over mining stocks.

Typically, gold bulls have favored buying shares of Newmont Mining(NEM), Barrick Gold(ABX) and other miners rather than the metal itself.

Bullion prices surged in the second half of 2007 as the crisis in the credit markets shook investor confidence and increased the allure of hard assets in general and gold specifically.

In early November, the price of gold flirted with the record high of $875 an ounce that was reached in 1980 at the height of the Iran hostage crisis. But now, unlike 27 years ago, the price of the metal has remained elevated, with this year's average level set to come in around $690 to $700, compared with $612 in 1980 and $607 in 2006.

The usually cautious Jessica Cross, CEO of the London-based consultancy VM Group, says gold prices should get a double boost next year from continued declines in the value of the dollar and the uncertainty of a U.S. presidential election combining to drive up demand.