Crude oil will hit $100 a barrel while gold will reach $1,500 an ounce by the end of this year, said Byron Wien, vice chairman of Blackstone Advisory Services. He offered his global financial reasoning to CNBC.
“The emerging markets are consuming more and more oil all the time,” Wien said.
“The developing world consumes a little over 20 million barrels a day and they’re going to add one million barrels a day every year for the next 20 years. I don’t know where it’s all going to come from—the price is going up.”
Wien pointed out that while an individual in the U.S consumes approximately 25 barrels of oil each year, the numbers are contrastedly lower at near 2 and 0.9 barrels in China and India, respectively.
“There’s no way China and India are going to stay at 2 and 0.9,” said Wien and added he is “very positive” on the energy sector.
Meanwhile, Wien said the rising gold price has “nothing to do with geopolitical risk or inflation.”
“Most people’s assets are in financial instruments and gold is an insurance against financials and the erosion of the value of financials, the dollar, and the purchasing power of paper currencies,” he explained.
“You can buygold ETFs; if you’ve got a lot of money, you can buygold and stack it away.”
- Watch Wien's Previous Appearance on CNBC (Mar. 15, 2010)
CNBC Data Pages:
Top Dow Winners (as of this writing):
Bank of America
No immediate information was available for Wien or his firm.