Philip Manduca, head of investment for U.K. money manager ECU Group, says gold will breach $2,000 next year.
That would represent a new record and a whopping increase of 125 percent from the current level of $890 an ounce.
“I’ve forecast that gold will go beyond $2,000 before 2010 is out, and I still believe that very much,” Manduca tells CNBC.
And what’s going to cause that surge?
“Risks of inflation, because it’s the only way we’re going to get out of the debt problem, currency debasement and devaluation, because it’s the only way we’re going to get out of the debt problem and, of course, the potential for a massive debt bust,” Manduca says.
First, though, gold could slip to $750 to $850 in the next two to three months as “speculative liquidation in what is a crowded trade” continues, according to Manduca.
In addition, he says, “You’ve got this huge fear that the IMF is going to raise money via gold sales, and that of course is keeping a lid on the gold price.”
If gold indeed slips back to $750 to $850, “I would see that as a buying opportunity,” Manduca says. “Gold to me in a macro sense is a one-way bet.”
Other analysts too are bullish on gold, but not quite to the extent that Manduca is. Jeffrey Christian, managing director of commodities firm CPM Group, tells Moneynews that gold may surpass its record high of $1,033.90 next year.
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