Gold to $10000?
NEW YORK - June 1, 2010 - Peter Schiff, president and chief global strategist at Euro Pacific Capital thinks gold could reach US$5,000 to US$10,000 per ounce in the next five to ten years.
“People are afraid of the debasement of all the currencies,” he told BusinessWeek. “What’s surprising is that gold is still as low as it is.”
When benchmarked against the CPI, money supply and GDP, there is no doubt that gold can easily double from here, according to David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates.
“Demand is always difficult to forecast, especially for jewellery, but we do know that central banks have very deep pockets and bought more gold last year (425 tons) than at any other time since 1964,” he said in a note.
Rosenberg also noted that the supply backdrop is highly supportive of a sustained bull market, with mined production failing to climb in the past decade. In fact, it has fallen in five of the past eight years.
He added, “We know what the marginal cost curve is doing because there is so little cheap supply left in the ground that gold companies now have to drill as much as 2.3 miles to get to the yellow metal in South Africa (and all Bernanke has to do is press a button).”
