Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA), says gold will reach $3,000-$5,000 as central bank reserves are depleted.
"Six years ago when gold was at $436 we predicted that this would happen," Murphy tells CNBC.
Murphy and members of GATA believe that central banks, bullion banks and the International Monetary Fund have manipulated gold.
Other analysts have said that the 1999-2002 gold sell-off by the Bank of England, when gold was far less than its current price, happened as a result of pressure from the Treasury.
However, at a gold conference in London, Murphy spoke of a "gold cartel" and claimed that the sell-off came because Goldman Sachs and the Bank of England wanted to drive the price of gold down.
"When we started (in 1999), we said that the central banks were flooding the market with gold."
"If you want the best price for your gold, you don't tell the world in advance what you are doing," Murphy says.
The International Monetary Fund's monthly report on central bank reserves showed Thailand, Russia and Kazakhstan, among others, added to their holdings of gold two months ago, prolonging the trend in the official sector to put more of their reserves into bullion rather than hard currencies.
“If you look at the European bond markets, you will see yields on Italian and Spanish bonds are back above 6 percent, so this crisis, unfortunately, seems to be spreading to Italy and Spain, which is also potentially more serious than Greece, because they're much larger," Jesper Dannesboe, senior commodities strategist at Societe Generale, told Reuters.
"Gold is reacting to this and that is the main drier right now.”
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