Thursday, July 15, 2010

Joe Foster: Gold Above $3,000 In Couple Of Years

Joe Foster of US based Van Eck Associates, who runs the Falcon Gold Equity fund, has said gold could go to $3,000/oz in the next few years. The driver will be continued stress on the financial system.
‘We are positioned for a bull market,’ Foster told investors this week. ‘This bull market has been going on for nine years and it could very well go on for another nine years.’...

‘I have no problems with the gold price up around $2000 or $3000 an ounce in the next few years, or even higher than that,’ said Foster. Economic problems are not going away any time soon, he says,...

‘We’re in a great macro environment for gold. We’re in the midst of a credit contraction, the housing market in the US is in very bad shape and the commercial real estate market is also in poor shape. On top of that we have austerity measures spreading around the world. We’re going to get a weak economy going forward, along with deflationary pressures. In that kind of market, investors start looking for a sound currency and they’re looking for gold.’

This forecast isn't really outlandish for a gold bull, and there is some tolerance for that kind of boosterism in the gold fund world. Should his prediction come true, though, gold will definitely be in a bubble.

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