Posted by rahrens_1 on September 15th 2011 at 01:50 pm
To date only goldbugs like Jim Sinclair have been talking up the possibility of $10-12,000/oz gold. Others like Eric Sprott have mentioned it also, basically agreeing with Sinclair’s view. Now the idea of $10,000/oz gold is going a bit more mainstream thanks to Dylan Grice of Societe Generale SA who points out that it would need to go to $10,000/oz to balance out the US money supply. He notes that $10,000/oz could be considered the current “fair value” of gold. He notes that in 1981 gold around $850 covered 130% of the money supply. Gold would need to get over $10,000/oz to be equivalent to $850/oz gold from 1981.
See full article from Bloomberg here.