Gold may yet reach US$3000 an ounce, despite recent downward trends according to ETF Securities’ Graham Tuckwell.
So writes James Fernyhough (www.financialstandard.com.au) in edited excerpts from the original article* entitled Gold headed to $3k an ounce says ETF pioneer.
[The following article is presented by Lorimer Wilson, editor of www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Fernyhough goes on to say in further edited excerpts:
Speaking at an event at the ASX marking 10 years since ETF Securities launched the world’s first gold exchange traded product (ETP), Tuckwell, reportedly worth $775 million in 2012, said:
- Economic uncertainty mean gold’s prospects are better than many forecasters realise.
- Recent highs were not a bubble – the gold bull market has not ended, because “nothing has actually changed.”
- Potential tapering in the US Federal Reserve’s quantitative easing program does not deal with the problem.
- It’s one thing to actually slow down the bond purchases, but where’s the repayment of them, where’s the reversal of that printing of money? If it doesn’t get reversed, the only thing that can happen is the debasement of the currency, and history shows that.
- As interest rates rise, budget deficits are going to feel the pressure.
- Gold is the ultimate headmaster on the countries’ deficits, fiscal discipline, and the value of currency.
While the US$3000 figure is wildly above most forecasts, which are mostly flat at the current level, UBS global commodity analyst Tom Price said these flat forecasts are based less on informed analysis than on the fact that “people just don’t know what’s going on.”
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
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