Gold Price to reach $6000 dollars an ounce
'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.'
'Purchases by investors of gold will be based on fears of systemic risk or banking crashes,' Gmuer said.
Gmuer's prediction is based on the events in the last major dramatic gold boom in the late 1970s in which gold rose from 35 to a heady 850 dollars an ounce.
'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.' He stated.
Noting that this time round there is much more economic instability and, investors will continue to seek for safe havens.
He also said that there were no safe currencies remaining, particularly with, 'What the Swiss National Bank did two-and-a-half weeks ago, increasing the supply of the Swiss franc, means the safe currencies are all gone. That is why gold will have a revival.'
He added, 'This bull trend will end all the other major bull markets,' and pointed to debt capital as an asset class where demand and prices are going to continue to decline.
Coupled with a further 500 billion in debt now being created guaranteeing an even further decline of the dollar and a poor showing of interest rates, gold and silver are now the only true safe havens available to cautious investors.
Under these circumstances the gold price reaching $6000 dollars an ounce
Is not out of the question.