Tags: Superbear | Tice | 6 | 000 | Gold | Ahead | us

Superbear Tice: $6,000 Gold Ahead

Wednesday, 01 Dec 2010 08:29 AM

Superbear David Tice says that the Dow Jones Industrial Average might not have to slide too far to see gold rise to $6,000 an ounce.

Federated's chief portfolio strategist for bear markets, Tice thinks the Dow could go much lower, perhaps to below 5,000. But it won’t need to collapse as it did in 2009 for gold to zoom higher.

He sees “more than” 10 percent inflation and “much higher unemployment” in the cards as well.

When investors “lose trust in the currency, gold goes up and the Dow goes down,” he told CNN.

Tice admits that $6,000 gold “seems unrealistic, but when you look around the world at the fiat money, which means money backed by nothing ... we could easily be at $5,000 for gold.”

He recommends investors who want to go long buy gold and silver metal as well as gold-mining stocks. He also recommends dividend stocks that have been driven down to close to their book values.

You can thank the Fed and Washington for this outcome, Tice says.

“Unfortunately, our politicians have taken the stance of kicking the can down the road,” he says. “Frankly, the Fed would have been better off doing nothing.”

Artificial demand on the second round of quantitative easing, put in place by Fed Chief Ben Bernanke, simply delays the inevitable, Tice warns.

“I’m very concerned that we are debasing the currency,” he says.

Bernanke this week told business leaders he is growing concerned about long-term unemployment in America.

"We're not growing fast enough to materially reduce the unemployment rate," Bernanke said at a speech at Ohio State University, where he met with executives.

The economy lost 8.5 million jobs during the recession but has created 1 million new jobs so far, Bernanke said.

"Getting new jobs and getting unemployment down is of critical importance," he said.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Superbear David Tice says that the Dow Jones Industrial Average might not have to slide too far to see gold rise to $6,000 an ounce. Federated's chief portfolio strategist for bear markets, Tice thinks the Dow could go much lower, perhaps to below 5,000. But it won t need...
Superbear,Tice,6,000,Gold,Ahead,us,economy
306
2010-29-01
Wednesday, 01 Dec 2010 08:29 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