last interview with The Gold Report in February, Goldman Sachs was predicting that gold would to go down to $1,200/ounce ($1,200/oz) in several years, and now "Dr. Doom," Nouriel Roubini, says it's going to $1,000/oz. What's your view?
Chen Lin: In the near term, I think gold is being controlled
by the paper market on Wall Street, which is unfortunate. However, I'm
still bullish for the long run.
TGR: Do you see anything on the economic horizon that could create a more positive environment for gold in the near term?
CL: Personally, I'm not sure all the problems are behind us.
Japan just had a big swing in the stock market and is going through a
risky experiment to do a quantitative easing (QE), which is actually on a
much larger scale than that of the U.S. I think Japan, for the next few
months if not year or two, will decide how successful QE can be. Japan
is doing much, much stronger QE than that of the U.S, which has 100%
debt to gross domestic product (GDP). Japan has over 200%. So actually
it's a blessing to the U.S. to see what is going to happen with the
Japanese experiment. I think that will be a key indicator for the longer
term effectiveness of QE. (more)
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