Tags: Byron | Wien | oil | gold

Wien: Oil Headed to $100, Gold to Hit $1,500 This Year

Friday, 16 Apr 2010 09:05 AM

By Dan Weil

Oil will hit $100 a barrel, and gold will make it to $1,500 an ounce this year, predicts Byron Wien, vice chairman of Blackstone Advisory Services.

Oil currently trades around $85 and gold around $1,156.

“The oil situation is a simple one,” Wien told CNBC. “We only find oil at about the same rate the existing wells deplete.”

Demand is particularly growing in emerging markets, he says.

“The developing world consumes a little over 20 million barrels a day, and they’re going to add one million barrels a day every year for the next 20 years. I don’t know where it’s all going to come from: the price is going up.”

Wien recommends investing in energy stocks.

As for gold, “it’s a totally different thing,” he said. “It has nothing to do with geopolitical risk or inflation.”

So what are the issues for the precious metal?

“Most people’s assets are in financial instruments, and gold is an insurance against financials and the erosion of the value of financials, the dollar, and the purchasing power of paper currencies,” Wien said.

He recommends that investors allocate 5 percent of their investments to the precious metal.

Others are bullish on oil too.

“Oil has moved higher in anticipation that demand is coming back,” David Greely, senior energy economist at Goldman Sachs, told Bloomberg.

“Positive economic news has helped push prices into the $85-to-$95 range.”

© 2015 Moneynews. All rights reserved.

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