Gold has been under-owned and is poised to hit $2,000 per share by the end of 2012, Michaer Purves of Weeden told CNBC on Friday.
(Read More: Will Obama Cause a ‘Super Spike’ in Gold?)
On “Fast Money,” the firm’s chief global strategist and head of equity derivatives research updated his year-end price targets for gold, as well as silver , which he sees heading to $50 per ounce, and the gold miners index to $60 per share.
(Read More: Fed’s ‘QE-Infinity’ Will Push Gold Up to $2,400: Pro)
“One key message I’d like to get out there is simply that we’ve seen a lot of money being made over the last several weeks, but I think we have to step back and realize that this is really breaking out of a consolidation and a really important move to the upside across the precious-metals complex,” he said. “Don’t be so fast to take profits here.”
(Read More: ‘Golden Cross’ May Signal Big Gold Gains Ahead)
Monetary easing, Purves said, was a strong catalyst.
“Right now, we have American, European and Japanese helicopters increasingly showering the world with money and therefore debasing reserve currencies,” he said. “Gold is still under-owned by a wide spectrum of investors and owners.”
From a long-term perspective, Purves said, gold has a long upside ahead.
(Read More: Dennis Gartman Bullish on Gold: ‘Don’t Fade It’)
“It’s important to point out that the bullish sentiment on gold and silver is still very low compared to where it was in 2010, 2011,” he said. “The spec interest is still low as well. Gold’s been off everyone’s radar for a long time because it went through a very messy consolidation. I think that’s at an end, and I think we’re going to start seeing continued movement to the upside.”
Trader disclosure: On Sept. 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long SWN; Joe Terranova is long AAPL; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long VLO; Joe Terranova is long CSTR; Joe Terranova is long CHKP; Joe Terranova is long GLW; Joe Terranova is long EMC; Joe Terranova is long NXPIP; Joe Terranova is long AAPL SEPT 655 PUTS; Joe Terranova is short AAPL 640 PUTS; Joe Terranova is short EURO DECEMBER FUTURES; Steve Weiss is long T; Steve Weiss is long VZ; Steve Weiss is long VOD; Steve Weiss is long AAPL; Steve Weiss is long TOT; Steve Weiss is long HK; Steve Weiss is long AIG; Steve Weiss is long BAC; Steve Weiss is long BBT; Steve Weiss is long QCOM; Steve Weiss is long MTGE; Steve Weiss is long CINY; Steve Weiss is long AMTG; Steve Weiss is long M; Steve Weiss is long EUO; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long F; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long S; Steve Grasso is long NVIV; Steve Grasso is long PFE; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in NFLX; Jon Najarian is long call spreads in GLD SHORT STRANGLES; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Jon Najarian is long ATVI;
For Colin Sebastian
Robert W. Baird & Co. Incorporated makes a market in the securities of FB.
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