Bill sends along this good news/bad news item for any investors among our readers to ponder:
The "real move" in gold is to come, predicted Egon von Gruyerz, founder of precious metals investment and storage company GoldSwitzerland.com, on Monday.
He told CNBC he sees the inflation-adjusted price of gold "easily" rising to six times its current price ($1,210) to around $7,000 an ounce in the future on "normal" inflation.
"Adjusted for real inflation the 1980 gold peak in today's prices corresponds to around $7,200 today. So gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters," von Gruyerz's latest report for GoldSwitzerland.com said.
But von Gruyerz told CNBC gold could go higher if the world encounters hyperinflation.
The fears stemming from the European debt crisis will enhance gold's safe haven appeal, according to von Gruyerz.
"Gold is at this point not a bubble," he added. "It is not overbought."
The bad news, of course, is the reason for the price rise. According to von Gruyerz:
"Clueless governments still don't understand that their ruinous actions have created a credit-infested and bankrupt world. They will continue to prescribe the same remedy that caused the problem in the first place, namely more credit and more printed money. The consequences are clear: Inflation, hyperinflation, economic and human misery as well as social unrest."
These are interesting times.
RLC
