Tags: Gold | 6 | 200 | Ounce

Asset Manager: Gold Will Hit $6,200 an Ounce

Tuesday, 06 Sep 2011 09:35 AM

Gold prices, which are surging close to $1,900 an ounce, have a long way to climb and will eventually break $6,200 an ounce, says Urs Gmuer, asset manager at Dolefin, a Swiss investment advice firm.

A weaker dollar and economic uncertainty have sent gold prices skyrocketing lately, although it won't be the first time the precious metal has soared.

In the 1970s, when economic conditions deteriorated and investors flocked to gold as a safe haven as they are doing now, gold went from $35 an ounce to top off at $850 an ounce.

gold200gtyy.jpg
(Getty Images photo)
Today, world economies will battle uncertainty after uncertainty, which leaves already high gold prices with one way to move: up.

"Gold prices have risen over the last few years, as the macroeconomic picture has become worse. The deterioration of the fundamental situation has now gone even further," Gmuer tells CNBC.

"Purchases by investors of gold will be based on fears of systemic risk or banking crashes."

Investors need to be careful to avoid looking for safe currencies.

"The ultimate currency, which has stood the test of time, which has no political support behind it, is gold. Nobody can print gold out of a machine or a PC."

Other experts agree that gold has much more room to climb, especially if the Federal Reserve keeps interest rates low, which it has said it will.

"We had an end to the last gold cycle by jacking up interest rates, and that’s clearly off the table for the next couple of years," Rick de los Reyes, who manages $800 million at T. Rowe Price Groups Global Metals and Mining Fund in Baltimore, tells Bloomberg.

"We are going to be in a negative real-interest rate environment. The price can go significantly higher."

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Gold prices, which are surging close to $1,900 an ounce, have a long way to climb and will eventually break $6,200 an ounce, says Urs Gmuer, asset manager at Dolefin, a Swiss investment advice firm. A weaker dollar and economic uncertainty have sent gold prices...
Gold,6,200,Ounce
294
2011-35-06
Tuesday, 06 Sep 2011 09:35 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