Gold may almost quadruple to US$3,500 an ounce by 2010, says strategist
Source: BI-ME , Author: BI-ME staff
Posted: Sun March 1, 2009 12:00 am

INTERNATIONAL. Equity strategist Christopher Wood, whom the Wall Street Journal dubbed in 2007, at the start of the subprime crisis, as "the man who saw it coming," recently told a conference in Japan that gold will hit US$3,500 an ounce by 2010.

The US is facing a deflationary collapse more severe than the crash that hobbled Japan’s economy in the 1990s, leaving gold as the only defensive play for investors, he said.

Speaking at CLSA's annual Japan Forum Conference last week, Wood said: “The collapse of securitization is a much more deflationary situation in the US than anything seen in Japan when the bubble collapsed in the early 1990s. What we need in the future is a more fundamentally disciplined system, even at the cost of higher levels of growth.”

Gold is likely to more than triple from the current level to US$3,500 in 2010, he said. ”It’s the only form of money or credit not contaminated by the credit system - and the fact it’s still money is that central banks still own a lot of it), the global paper currency system will steadily deteriorate, eastern and central Europe will face a full-scale currency collapse, putting huge pressure on western Europe."

The only realistic course for the US is radical action to nationalise its most stricken banks and create one big “bad bank” to take on their toxic assets, he warned. Anything short of that will bring about more economic chaos and drag on other economies.

Wood, who in 2003 predicted the US housing crisis and the subprime crisis, has been consistently rated among the top equity strategists on Asia - most recently by Institutional Investor magazine.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: May 22, 2018
UAE. Cyber-criminals are turning their attention to the supply chain as a new means to exploit business data.
date:Posted: May 21, 2018
UAE. A new defence is being developed that will allow companies to tackle the latest threats as soon as they appear on the network; Machine learning enables AI to detect patterns in all sorts of data sources and create behaviours based on recognized patterns.
date:Posted: May 17, 2018
UAE. The report states that 50% of SME funding applications are rejected by banks and that alternative trade finance, powered by FinTech and Blockchain, is on the rise.
dhgate