GOLD NOT EVEN CLOSE TO BEING OVERVALUED YET
March 07, 2011
Gold not even close to being overvalued yet - Doug Casey
The investment legend said he wouldn't be surprised if gold hit $5,000 in the next couple of years as central banks continue to pump liquidity into the system but warned risks remain high in the sector
By John McCrank
MINEWEB
March 8, 2011
…Casey, a legendary investment guru who founded and chairs his own research firm, said he would not be surprised if gold hits $5,000 an ounce in the next couple of years, as paper currencies in the United States, Europe, and Japan drop in value.
"Central banks all over the world are creating trillions of currency units and that in turn is creating lots of bubbles," he said in an interview on the sidelines of the PDAC prospectors and developers convention in Toronto….
Casey said he believes that gold is not even close to overvalued. In his opinion, the current economic recovery will not last -- we are "in the eye of the hurricane," he says -- so gold's safe-haven appeal will only get stronger.
He said he also likes the prospects for silver, and that if there's a bubble anywhere in the commodities sector right now, it's likely in rare earths, a group of metals used to make electric car batteries and electronic devices.
Casey, who's book "Crisis Investing" sat atop the New York Times bestseller list for several weeks in 1980, said that the day he sees a picture of a golden bear tearing up the New York Stock Exchange on the cover of Business Week, or some other magazine, he'll know it's time to get out of precious metals.
He said that if he were not so pessimistic on the prospects for currencies and the global economy, he'd be telling people that after the strong run in commodities we've seen in recent years, now would be a good time to get out.
"The reason I think they shouldn't, perhaps, is because I think we're likely to go into a mania that's going to be a mania for the record books. It's going to be a super-bubble."
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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.
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