Thursday, September 30, 2010

BlackRock Prez: Gold Could Hit $2000

"Since 2001, gold has returned about 17 percent a year, so it’s a very good long-term investment,” Robert Kapito, President of BlackRock, said in an interview on CNBC. “Clients are looking to get exposure into something that they feel comfortable with, and gold is proven to be a good investment.”

“If you adjust for inflation, gold can go up to the $2,000-area,” said Kapito.

Geez, I wish I could get data like Kapito is referencing, for EPJ readers. Oh yeah, covered this Monday.

Note: Although the inflation adjusted gold price is interesting to look at, the keys are supply and demand factors, which are both changing to the bullish side for gold--especially on the supply side with central banks now net buyers of gold, and mining companies no longer hedging future production.

1 comment:

  1. I would've liked to know if Kapito has been advising his clients to hold gold since 2001. If not, I imagine these guys are marginal recommenders and thus marginal holders and we'll capitulate when gold goes the other way in a panic.

    Everyone is bullish on gold all of a sudden. Either this is the Final Countdown for the dollar, or there are a lot of trend following chumps who are about to get their ass beat by Mr. Market.

    Want to place a bet?