Bloomberg reports that Barrick Gold (ABX: 39.44 -0.34 -0.85%) boss Peter Munk sees a “frightening trend” in gold …
Munk, founder of Toronto-based Barrick, the world’s largest gold producer, said he has received an increasing number of calls from wealthy investors looking for ways to buy bullion. While that is positive for the metal market, it is a “sad part of a civilized society,” Munk said.
“That’s not where you want to be, it’s alarming,” he said today in an interview from Davos, Switzerland, where he is attending the World Economic Forum. “Do I personally believe gold will break through $1,000? It’s not a question of if, it’s a question of how soon.”
Check out this chart of the major gold ETF, the GLD (GLD: 108.29 -2.05 -1.86%)…
And if you think gold is doing well, you should check out a chart of silver …
I’m showing the SLV (SLV: 16.65 -0.43 -2.52%) (an ETF that holds physical silver) because it tracks silver closely and is easy for ordinary investors to buy. Red-Hot Commodity ETF subscribers should already own the SLV, and have nice double-digit open gains after today’s move. Sweet!
But Munk raises a good point. Investors are running into gold and silver because they’re running scared. In my special report today, I spelled out why I think they’re right to be scared. Are gold and silver headed higher? In a word, “Yes.” Just expect plenty of volatility along the way.
Related Posts
- Is “Large-Scale” Gold Buying Coming? (09/24/08)
- Gold Outlook — Boil and Trouble (09/10/09)
- New Charts on Gold — Short-term Pullback? (02/03/09)
- Wild Days for the Dollar, Oil and Gold (10/01/08)
- Will China Ban Exports of Gold and Silver? (09/17/09)
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Bloomberg put out a report today that the Rand refinery, which makes the blanks for Krugerrands, doubled production, to the highest level in 23 years. The US mint sold more American Eagles in January of 2009 than it did in six months in 2007. I believe that we’re going to see gold break the record of $1030- however I’d like to know what your opinion is on the ceiling. Is there going to be a gold bubble, or will prices stabilize?