"The Fed has tied interest-rate policy to the amount of unemployment that we have -- it has to be at 6.5%," Steel Vine Investments CEO Spencer Patton tells Fox Business in a Dec. 18 interview.
"And what that means is that you're going to get low interest rates that are very bullish for gold and will lead to inflation coming down the road. Endless money printing. ... As hedge funds bring in cash -- running one myself -- gold is an investment allocation that makes a lot of sense for hedge funds, so I think the gold theory could really benefit as money runs into the market. You'll see that from individual investors as well. Once they get more discretionary income and they are fearful of their dollar losing value, they'll start buying into things like gold and silver."
Addressing Saxo Bank's annual end-of-the-year "outrageous" forecasts, which this year include a projected $1,200 gold price as a possible but unexpected "black swan"-type low, he says: "In order for gold to get to $1,200 an ounce, you'd have to have a deflationary collapse, which would be catastrophic. I think the lowest that I could imagine gold being is at $1,550 at the bottom. But I think we'll be visiting $2,000 in 2013."
"And what that means is that you're going to get low interest rates that are very bullish for gold and will lead to inflation coming down the road. Endless money printing. ... As hedge funds bring in cash -- running one myself -- gold is an investment allocation that makes a lot of sense for hedge funds, so I think the gold theory could really benefit as money runs into the market. You'll see that from individual investors as well. Once they get more discretionary income and they are fearful of their dollar losing value, they'll start buying into things like gold and silver."
Addressing Saxo Bank's annual end-of-the-year "outrageous" forecasts, which this year include a projected $1,200 gold price as a possible but unexpected "black swan"-type low, he says: "In order for gold to get to $1,200 an ounce, you'd have to have a deflationary collapse, which would be catastrophic. I think the lowest that I could imagine gold being is at $1,550 at the bottom. But I think we'll be visiting $2,000 in 2013."
More information can be found online at http://www.goldbullionadvisors.com
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