Stan Bharti, chief executive officer of private merchant bank Forbes & Manhattan, doesn’t believe that gold is moving up because of short-term market fears. It’s a move that’s been a long time coming.
After the 2003-2004 period, “hard assets were in demand as the ‘smart money’ was looking away from stocks and into gold to protect themselves,” said Bharti. Then in the “last 8-10 years we’ve seen a bull market in stocks and lived in a low-interest-rate environment. That is dangerous for inflation.”
Given that backdrop, he expects gold prices to top $2,000 by the end of next year. That would be a record for Comex futures. More near term, Bharti sees gold jumping from $1,480 to $1,600 in the next quarter.
