Gold ‘Will Go To $3,000/oz’ – David Rosenberg

Gold ‘Will Go To $3,000/oz’ – David Rosenberg
Highly respected econ­o­mist and strate­gist David Rosen­berg has told that Finan­cial Times in a video inter­view (see below) that gold “will go to $3,000 per ounce before this cycle is over.”
Mar­kets are repeat­ing the down­turns of 2010 and 2011 and it is time to search for safety, David Rosen­berg of Gluskin Sheff tells James Mack­in­tosh, the FT Invest­ment Editor.
Rosen­berg sees a “very good oppor­tu­nity in gold” as it has cor­rected and seems to be “off the radar screen right now”.
He sees gold as a cur­rency and says the best way to value gold is in terms of money sup­ply and “cur­rency in circulation.”
As the “vol­ume of dol­lars is going up as we get more quan­ti­ta­tive eas­ing” he sees gold at $3,000 per ounce.
Mack­in­tosh says that Rosenberg’s view is a “pretty bear­ish view”.
To which Rosen­berg responds that it is “bull­ish view on gold and gold min­ing stocks.” Mack­in­tosh says that it is “bear­ish on every­thing else”.
Rosen­berg  says that it is not about being “bull­ish or bear­ish,” it is about “stat­ing how you view the world” and he warns that the major cen­tral banks are all going to print more money and keep real inter­est rates neg­a­tive “as far as the eye can see.”

This is “crit­i­cal” as one of the key deter­mi­nants of the gold price are real short term inter­est rates.
The longer they stay neg­a­tive “the longer the bull mar­ket in gold is going to be.”
Rosen­berg sums up that “this is not about being bull­ish or bear­ish, it is about how do we make money for our clients.”
The inter­est­ing inter­view can be watched here.