Breaking from Moneynews.com The massive fiscal and monetary stimulus will continue to send gold surging higher, and it could ultimately reach $8,250 an ounce, says hedge fund star Bill Fleckenstein. “The world is slowly realizing that all paper currencies are headed for debasement, leaving thoughtful people with little choice, as has been the case for thousands of years, except to establish a position in the one currency that can't be printed,” he says, according to Business Insider. Fleckenstein is referring to gold, of course. Until fiscal and monetary policy turn prudent, gold will keep rising, he says. Fleckenstein cites the work of Paul Brodsky and Lee Quaintance of QB Partners in determining a fair value for gold based on a gold-standard currency exchange system. “Under this formula, the exchange rate of the dollar to an ounce of gold would be about $8,250,” Fleckenstein says. Gold now stands at about $1,360. “I am not predicting that gold will go to that price, as I have no idea what the ultimate high might be. I am trying to show that there are ways to calculate the price where gold might trade if some form of gold standard were reintroduced, which I believe is where we are ultimately headed.” Fleckenstein isn’t the only gold bull around. Investment legend Jim Rogers says the precious metal will hit $2,000 an ounce in the next five to 10 years for the same reasons Fleckenstein mentions. © Moneynews. All rights reserved.
Fleckenstein: Gold Could Rocket to $8,250
Thursday, 7 October 2010
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