"I'm relatively confident [gold] will start to pick up in 2013 says Socrates exec. Charles Drace. Going longer, I see the economic situation getting worse because of the massive debt and government's inability to deal with it.
"Bullion banks won't be able to short it as it starts to climb, central banks will be buying it, inflation and all those barriers will come away because the debt has climbed and we haven't done anything about the economic situations that make it worse. We've borrowed more money to feed into it. In Greece, Spain and America we're making the debt worse; that would argue for gold as a safety. Then we have the other dynamics, [central banks] are printing trillions of dollars around the world to push the currency down. The IMF and BRIC (Brazil, Russia, India and China) countries have been talking about having some kind of a tradable currency to replace the U.S. dollar because the U.S. government with all their printing will devalue their dollar and that will hurt all the exporting countries because they're all priced in dollars. The discussion is around having 15-25% of this new trading currency in gold. The best way to think about it is as a trade-weighted asset. When I said a few years ago $5,000-an-ounce gold, now I'm thinking closer to $7,500 an ounce because things have got worse and these new dynamics will bode well for gold prices."
In a separate interview, Drace was asked: "Do you still think we'll hit the highs of $5,000?"
"I'm absolutely certain of it. In fact I think it'll be closer to $7,500 but I'd put the expectation for that price out a bit further. One of the dynamics of gold bullion as a safety investment is extreme problems in the economy. If you look at the long-term cycles, we're due to have a depression. We have everything we need to have one. We have the massive debt, imploding financial and economic worlds, we have governments who are totally without any clue about what to do about it (if they could, which I don't they can). I think the debt has gone too far for that. They're printing money and holding off the day of reckoning. You can see this so clearly in Spain in particular. And we see it in Greece and America. Figures out last week from America say as a percentage of GDP America has more debt than Greece. Governments will push out the depression as long as they can, but the further you push it out, the bigger the problem will become, the bigger the problem, the higher gold prices."
"Bullion banks won't be able to short it as it starts to climb, central banks will be buying it, inflation and all those barriers will come away because the debt has climbed and we haven't done anything about the economic situations that make it worse. We've borrowed more money to feed into it. In Greece, Spain and America we're making the debt worse; that would argue for gold as a safety. Then we have the other dynamics, [central banks] are printing trillions of dollars around the world to push the currency down. The IMF and BRIC (Brazil, Russia, India and China) countries have been talking about having some kind of a tradable currency to replace the U.S. dollar because the U.S. government with all their printing will devalue their dollar and that will hurt all the exporting countries because they're all priced in dollars. The discussion is around having 15-25% of this new trading currency in gold. The best way to think about it is as a trade-weighted asset. When I said a few years ago $5,000-an-ounce gold, now I'm thinking closer to $7,500 an ounce because things have got worse and these new dynamics will bode well for gold prices."
In a separate interview, Drace was asked: "Do you still think we'll hit the highs of $5,000?"
"I'm absolutely certain of it. In fact I think it'll be closer to $7,500 but I'd put the expectation for that price out a bit further. One of the dynamics of gold bullion as a safety investment is extreme problems in the economy. If you look at the long-term cycles, we're due to have a depression. We have everything we need to have one. We have the massive debt, imploding financial and economic worlds, we have governments who are totally without any clue about what to do about it (if they could, which I don't they can). I think the debt has gone too far for that. They're printing money and holding off the day of reckoning. You can see this so clearly in Spain in particular. And we see it in Greece and America. Figures out last week from America say as a percentage of GDP America has more debt than Greece. Governments will push out the depression as long as they can, but the further you push it out, the bigger the problem will become, the bigger the problem, the higher gold prices."
More information can be found online at http://www.goldbullionadvisors.com
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