Oil May Hit $150, Gold $2,000: Risk Assessor
Oil prices are likely to hit $150 while gold may go above $2,000 longer term, Nick Bullman, a managing partner at research-based risk assessment service firm CheckRisk, told CNBC Tuesday.
In the Middle East and North Africa, "the genie is out of the bottle" and the unrest is " very likely to continue for some time," Bullman said, adding that over the short term oil, which currently trades around $105 forUS crude and $119 for Brent crude, is likely to spike to $135.
Demand from Asia is high, the glut in WTI crude is temporary and Saudi Arabia is unlikely to be able to make up for the difference in output from other countries in the Middle East and North Africa where exports decreased, he said in support for this bullish call on oil.
Gold as a store of value will continue to go up because "the monetization of debt is a big problem," Bullman added.
The precious metal is likely to hit $1,625 for this year but "it's going to go above $2,000" longer term, he predicted.
UK real estate is an area where prices will go down, according to Bullman, who expects them to fall between 20 percent and 25 percent from current levels this year and the next, because of high food and basic products inflation combined with unemployment and high debt levels.