Bullion fund manager argues the case for $10,000 gold - Wealth Managers

"Debt problems haven't been fixed and they're getting worse," notes Nick Barisheff

Nick Barisheff is the author of the recently published $10,000 Gold: Why Gold's Inevitable Rise Is The Investor's Safe Haven (Wiley, $39.95). As the title boldly predicts, he sees the metal at $10,000 an ounce, and soon -- within seven or eight years. The timing of the book's release couldn't be worse, but even so Barisheff says bullion is down, but by no means out.

"Nothing goes up in a straight line," he said in an interview. "Every market has pullbacks, but (global) debt problems haven't been fixed and they're getting worse." ...

In the book, Barisheff argues there are five stages that lead to runaway inflation and we're in phase three. In the first two, the gold standard is abandoned. Looser restrictions lead to more money in circulation. Inflation is low. The political focus shifts from repaying debt to using it as a tool for growth.

He believes we're near the end of the third phase, when a steady diet of low rates causes housing and market bubbles to form and burst. Savers are punished, because savings earn less than inflation. For lack of an alternative, we all invest in the stock market through our pensions and investments. This pumps up stock prices.

In the short run, people feel wealthier because the value of their homes rises along with the size of their stock portfolios. So they borrow more and the party goes on.

The last two phases are the reckoning. Cheap money can't stimulate any more growth and just creates inflation.

More information can be found online at http://www.goldbullionadvisors.com