Billionaire Canadian investor Frank Giustra, who has been bullish on gold for at least 10 years, is sticking to his guns.
"I don't know when and I don't know how high. But gold is going a lot higher,” he said at a conference last week, according to Mining.com.
The Federal Reserve’s easing will spark the move, Giustra says. The Fed "crossed the Rubicon" when it began quantitative easing in 2008 and is simply setting the stage for major inflation, he says.
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"Gold is the bubble of all bubbles. It's the mother of all bubbles. It's the bubble people will go to when they've exhausted all other bubbles.”
December gold futures settled at $1,724 on the Comex Friday, after touching a six-week low of $1,716 earlier in the session.
Gold’s appeal lies in the fact that it’s a tangible asset, Giustra says
"It is moveable. It is easily transferable across borders in times of crisis. It's a currency. It's liquid. It's easily tradable. I'm a fan of all hard assets, but particularly gold. It's the largest part of my portfolio, and it will continue to be until this cycle is over."
Last week’s drop made some market participants wary of gold, at least for the short term.
“Fear of the future in the U.S. (fiscal crisis) and in the eurozone (debt crisis) is an undercurrent in all markets, including precious metals,” Julian Phillips of GoldForecaster.com tells MarketWatch.
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