Gold Rush, Part 7

Peter Schiff seems convinced that gold at $1,200 an ounce is just the beginning.  He sees the precious metal hitting three, maybe four times that price in the next several years.

“[Gold at] $1,200 is not expensive, considering all the money that we’ve created and all the money we’re going to create—not only the Federal Reserve, but central banks around the world,” Schiff told CNBC.

Schiff said inflation pressures will drive gold prices up to $5,000 an ounce and investors should stock up right now.

“It might not hit $5,000 this year or next year, but it will eventually—maybe before Barack Obama leaves the White House,” he said.

“I don’t think there’s enough gold to meet the new demand that’s coming–because gold is money, it’s not just some other commodity."

"And when central banks makes currencies unattractive with zero interest rates and all this printing, people are going to go back to traditional money—they’re going to save in gold and transact in gold and the demand is going to explode,” he said.

Now, I'm no gold bug myself, but when I see the price of a commodity jump from $800 in mid-January to $1,200+ in December, I pay attention.  The faces change, but the bubbles remain the same.

Gold at $5,000 an ounce?  Honestly, I just don't see that happening and I pray it doesn't, because when that bubble pops, it will take the entire global economy with it.