The "real move" in gold is to come, predicted Egon von Gruyerz, founder of precious metals investment and storage company GoldSwitzerland.com, on Monday.
He told CNBC he sees the inflation-adjusted price of gold "easily" rising to six times its current price ($1,210) to around $7,000 an ounce in the future on "normal" inflation.
"Adjusted for real inflation (as per shadowstats.com) the 1980 gold peak in today’s prices corresponds to around $7,200 today. So gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters," von Gruyerz's latest report for GoldSwitzerland.com said.
But von Gruyerz told CNBC gold could go higher if the world encounters hyperinflation.
The fears stemming from the European debt crisis will enhance gold's safe haven appeal, according to von Gruyerz.
"Gold is at this point not a bubble," he added. "It is not overbought."
An important barrier for gold is $1,220 an ounce and that barrier will be broken and it's "going to shoot up by probably $100 very quickly," von Gruyerz told CNBC.
"There will be nowhere near sufficient gold to satisfy demand at current prices. We had been expecting gold to start its acceleration in March 2010 and this is exactly what is happening. We expect the move to be relentless during most of this year with very few major corrections but with high volatility. Moves of $100 in one day could easily happen. So gold is likely to make a top in the next few years between $5,000 and $10,000," his report stated.
"Gold reflects governments' deceitful actions in destroying paper money," he said. "At certain points gold is a commodity. Right now it's money."
Von Gruyerz sees the dollar collapsing, as well as many other currencies.
"You can only measure the value of currencies now against gold because gold has an absolute value," he said.
Euro-priced gold hit a record 1,025.72 euros an ounce on Monday, though it later corrected to 1,017.20 an ounce, close to its late Friday level.
"Clueless governments still don't understand that their ruinous actions have created a credit-infested and bankrupt world. They will continue to prescribe the same remedy that caused the problem in the first place, namely more credit and more printed money. The consequences are clear: Inflation, hyperinflation, economic and human misery as well as social unrest," von Gruyerz's latest report for GoldSwitzerland.com said.
- No disclosure information was immediately available for GoldSwitzerland.com orEgon von Gruyerz.