Sunday, June 2, 2013

Roubini: Gold Is Going To $1000 - Business Insider

Gold has been getting poleaxed in recent months, though it remains just below $1400/oz.

In a piece up at Project Syndicate, economist Nouriel Roubini says gold will fall to around $1,000 before the end of 2015.

He gives six reasons why.

We summarize:

  • Gold spikes during extreme crises. The crises are over.
  • Gold does well during periods when there's a risk of high inflation. That clearly is no longer a big worry, given how much central banks have unsuccessfully tried to stoke even modest inflation.
  • Now with the economy recovering, nobody wants to be in rocks that don't pay any dividends.
  • Real interest rates are rising. That kills gold.
  • Governments with debt issues are selling gold.
  • Gold was juiced by right-wing fanatics in the US. That boom is over.

Read the whole column here >

Source: http://www.businessinsider.com/roubini-gold-is-going-to-1000-2013-6

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