Gold just keeps churning higher, hitting a record of above $1,910 an ounce, which represents a surge of more than 50 percent from a year ago, and many experts expect the massive gains to continue.
Paul Sacks, principal gold trader at Aurum Options Strategies, is one of them. “The easy thing to say is that a selloff’s coming, but I don’t see it,” he tells CNBC.
The precious metal’s value will continue to surge through the end of this year and into 2012, he says. “Gold will spend most of next year over $2,000 an ounce.”
|(Associated Press photo)
Europe’s debt crisis and the petering out of the global economic recovery have investors scared and running to the safe haven of gold.
A Bloomberg survey of 13 gold traders and analysts produced a median prediction of a $2,000 price by year-end. That would put the metal’s gain for this year at 41 percent, the largest annual ascent since 1979.
“The economic data, debt problems, balance sheet problems are all deep-rooted and will take years to work out of the system. That is why we are still bullish on the trend in gold,” Paul Walker, head of precious metals at research firm GFMS, tells Bloomberg.
Individual investors who want to bet on gold would be wise to buy gold options to gain protection in case of a violent correction downward, Sacks says.
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