'871 Billion' Reasons to Buy Gold: Strategists
Will the gold boom continue in 2010? Kevin Kerr, president of Kerr Trading International, and James DiGeorgia, author of "The Trader's Great Gold Rush," offered CNBC their outlooks.
Kerr sees both fiscal and monetary policies driving gold yet higher:
"The Senate just gave us 871 billion more reasons to buy some gold," Kerr declared (presumably referring to the $871 billion health care bill passed by the legislature Thursday).
"The excess printing of money, the issuing of Treasurys—this is going to continue into 2010," he added. "And the unwinding of the dollar—that trend will continue into 2010 and beyond."
DiGeorgia agreed with Kerr's diagnosis and added his own further reasons for gold bullishness.
The supply/demand fundamentals are also very important. We've heard about 'peak oil'—well, we're at 'peak gold' now in production," DiGeorgia said.
"I expect gold to hit $1,500 [per ounce] this coming year. I did predict $1,200 when it was trading at $700-and-change in July."
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CNBC Slideshow:
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CNBC Data Pages:
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Gold Plays: ETF and Miner Stocks
SPDR Gold Shares
Barrick Gold
Newmont Mining
Gold Fields
Freeport McMoRan Copper & Gold
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Disclosures:
Disclosure information was not available for Kerr or DiGeorgia.
