Gold Hits New High; "Greed and Stupidity" of Politicians Will Keep It Going
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Gold hit another record high on Tuesday, up more than 2 percent to $1,270 per ounce, as investors continue to turn to the precious metal as worries over global currencies arise, but one expert sees gold pushing to $1,400 by the end of the year and hitting $2,500 eventually.
James DiGeorgia, who accurately predicted that gold prices would soar above the $1,000 mark back in 2005 and author of the book "The Trader's Great Gold Rush," told StreetInsider on Tuesday that "gold provides no upside resistance."
"It is possible that we will see the $1,300 or better level in the next 30 days. We see today’s spike as fears of another sovereign debt crisis in Europe arising causing insecurities among investors in paper assets."
DiGeorgia sees investors flocking into gold as a hedge against risk of inflation, monetary pressures and fears that we are heading into another crisis. He recommends that investors should be putting at least 15 percent of their portfolio towards gold, as he is concerned about the value of the dollar and European currencies.
Even if the economic recovery picks up, DiGeorgia sees gold as a "safe haven" for investors looking to hedge against future risks.
DiGeorgia sees the emerging markets as a key to the future of gold as it is seen as a safer bet than the dollar or other global currencies.
"“The emergence of trading gold in China and India is going to be a large factor in the price in the future."
Looking forward, DiGeorgia sees a monetary crisis as the next big thing as the U.S. deficit continues to rise, as well as the potential for a catalyst to come from Europe for a currency crisis.
"You should consider gold as the only true form of money that you can rely on,” DiGeorgia said. "Gold's value is measured by the greed and stupidity of politicians, and there is a lot of greed and stupidity going on all over the world right now."
Related ETFs:
SPDR Gold Shares (NYSE: GLD)
iShares COMEX Gold Trust (NYSE: IAU)
Market Vectors Gold Miners ETF (NYSE: GDX)
James DiGeorgia, who accurately predicted that gold prices would soar above the $1,000 mark back in 2005 and author of the book "The Trader's Great Gold Rush," told StreetInsider on Tuesday that "gold provides no upside resistance."
"It is possible that we will see the $1,300 or better level in the next 30 days. We see today’s spike as fears of another sovereign debt crisis in Europe arising causing insecurities among investors in paper assets."
DiGeorgia sees investors flocking into gold as a hedge against risk of inflation, monetary pressures and fears that we are heading into another crisis. He recommends that investors should be putting at least 15 percent of their portfolio towards gold, as he is concerned about the value of the dollar and European currencies.
Even if the economic recovery picks up, DiGeorgia sees gold as a "safe haven" for investors looking to hedge against future risks.
DiGeorgia sees the emerging markets as a key to the future of gold as it is seen as a safer bet than the dollar or other global currencies.
"“The emergence of trading gold in China and India is going to be a large factor in the price in the future."
Looking forward, DiGeorgia sees a monetary crisis as the next big thing as the U.S. deficit continues to rise, as well as the potential for a catalyst to come from Europe for a currency crisis.
"You should consider gold as the only true form of money that you can rely on,” DiGeorgia said. "Gold's value is measured by the greed and stupidity of politicians, and there is a lot of greed and stupidity going on all over the world right now."
Related ETFs:
SPDR Gold Shares (NYSE: GLD)
iShares COMEX Gold Trust (NYSE: IAU)
Market Vectors Gold Miners ETF (NYSE: GDX)
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