Gold ‘Will Go To $3,000/oz’ – David Rosenberg
Highly respected economist and strategist David Rosenberg has told that Financial Times in a video interview (see below) that gold “will go to $3,000 per ounce before this cycle is over.”
Markets are repeating the downturns of 2010 and 2011 and it is time to search for safety, David Rosenberg of Gluskin Sheff tells James Mackintosh, the FT Investment Editor.
Rosenberg sees a “very good opportunity in gold” as it has corrected and seems to be “off the radar screen right now”.
He sees gold as a currency and says the best way to value gold is in terms of money supply and “currency in circulation.”
As the “volume of dollars is going up as we get more quantitative easing” he sees gold at $3,000 per ounce.
Mackintosh says that Rosenberg’s view is a “pretty bearish view”.
To which Rosenberg responds that it is “bullish view on gold and gold mining stocks.” Mackintosh says that it is “bearish on everything else”.
Rosenberg says that it is not about being “bullish or bearish,” it is about “stating how you view the world” and he warns that the major central banks are all going to print more money and keep real interest rates negative “as far as the eye can see.”
This is “critical” as one of the key determinants of the gold price are real short term interest rates.
The longer they stay negative “the longer the bull market in gold is going to be.”
Rosenberg sums up that “this is not about being bullish or bearish, it is about how do we make money for our clients.”
The interesting interview can be watched here.
