If Dollar Depreciation Vs. World Currencies Reaches 35%

Gold prices will top $1,000 an ounce in two to five years because of a currency crisis fueled by a continued devaluation of the dollar, a leading analyst and investor, Paul van Eeden of Toronto predicted:

“with a very high level of confidence that gold prices will go to $1,000 an ounce in the next two to five years,”

While at the Northwest Mining Association’s annual convention in Sparks, Nevada.  He also said he does not expect gold prices to fall below $400 an ounce again.

 Western mining interests, the second-largest annual mining convention in the U.S. drew 1,800 visitors during the 5 day conference.

Industry officials said van Eeden is among at least three dozen analysts who have predicted gold prices would surpass $1,000 an ounce over the next five years.

Gold has had a sensational rise in the last 12 months, up over 45% for the year.  It has been steadily rallying since the beginning of November. 

Van Eeden said the dollar’s devaluation is responsible for the rapid rise of the price of gold.  The dollar has dropped an average of 10 percent this year versus many of the currencies of industrial nations around the world.  This continuing trend continues, leading to an overall 35% drop in America’s currency, over the next 2 to 5 years.

According to van Eeden, an over-valuation in the price of base metals that can possibly force a sell-off of all metals, including gold, is the only factor that would cause gold prices to drop.

“If not for that risk, I’d be 100 percent invested” in mining stocks, he said.

http://www.businessweek.com/ap/financialnews/D8LSU3R81.htm
MARTIN GRIFFITH - Associated Press used as reference for this article