Tags: Pento | gold | metal | price

Money Manager Pento: Gold Will Hit $1,800 This Year Amid Global Easing

By    |   Thursday, 31 May 2012 07:22 AM

Additional central bank easing worldwide will push gold prices back up to $1,800 an ounce later this year, says Michael Pento, president of money manager Pento Portfolio Strategies.

The precious metal has dipped about 19 percent to around $1,565 from last September’s record high.

Pento is particularly bullish on gold miner stocks. “We have just bought a lot of Market Vectors Junior Gold Miners ETF [Ticker: GDXJ] and wrote covered calls against it,” he tells Yahoo.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

Gold miner stocks are now pricing in an $850 to $900 range for gold bullion prices, Pento says.

“That’s where we’d be headed if market forces were allowed to operate. But they will be truncated.”

The central banks of the United States, Europe, Japan and China will initiate “massive quantitative easing, probably before the end of 2012,” Pento says.

As for the Federal Reserve, Chairman Ben Bernanke’s own comments indicate he’ll ease as soon as inflation dips below 1 percent, Pento says.

“The entire economy is based on the constant increase in the supply of debt, money, and asset prices. It’s a phony economy based on a fiat currency. It will crash.”

Many other experts expect gold to recover as well. Some say that Europe’s debt crisis will provide support.

“Ongoing concerns about the euro, the downgrading of Spain, and the risk of contagion is of course bullish for gold,” analysts at GoldCore write in a report obtained by Bloomberg.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!


© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
258
2012-22-31
Thursday, 31 May 2012 07:22 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved