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'Crash Course' Author Martenson: Gold Could Reach $2,500

By    |   Friday, 17 August 2012 11:09 AM

Gold could soon start a march to $2,500 an ounce, says Chris Martenson, CEO of financial advisory website PeakProsperity and author of “The Crash Course.”

His forecast is based on technical and fundamental factors.

On the technical side, gold is caught in a flag pattern between $1,550 and its record high of $1,924 from last September, trading recently at $1,621 per ounce.

Editor's Note: The Final Turning Predicted for America. See Proof.

“It has just been bouncing down to a perfect wedge," Martenson tells Yahoo. “Technically it looks like gold could be due for a breakout."

And fundamentals also suggest a surge higher, he says.

Negative real interest rates and fiscal recklessness from governments across the globe are part of the positive fundamentals, Martenson notes.

“We also have monetary recklessness. I’m as convinced as anybody that we’re going to have another round of [quantitative easing] at some point. And this one is going to be a little larger and more elegant than the last one.”

Then there’s the big kahuna: the possibility of a return to the gold standard. “If it does, pick a number,” Martenson says.

The figure he chose is $2,500 if the precious metal breaks its pennant pattern; however, he declines to specify a time frame for the move.

Some investors have grown leery of gold, as demand has waned from India and China, which together account for more than 45 percent of gold purchases worldwide.

Global demand slipped 7.1 percent in the second quarter from a year earlier, according to the World Gold Council.

Editor's Note: The Final Turning Predicted for America. See Proof.

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