Gold Price: The case for gold at $10 500 per fine ounce

Gold Investment - 10 October 2011

According to Pierre Lassonde, Asia does not need to panic, as he believes that the region will pull through while other regions will certainly feel the effects of the current economic crisis.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Lassonde has every right to express his views as he has a wealth of experience in the mining industry. He is currently the Chairman of Franco Nevada. His previous experience includes being Chairman of the World Gold Council and previously President of Newmont Mining. In short, the man should know what he is talking about. Recently at the annual meeting in Montreal, he announced that there would be a 20% correction in the gold price. Lo and behold it happened sooner rather than later.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Lassonde has made it clear that the gold price could reach $10 500 per ounce. Lassonde believes that investors should keep concentrating on the Dow Jones. Years ago the gold/ Dow Jones ratio was at 42:1 and today it is 6:1. You could buy 1 unit of Dow with 2 ounces of gold in 2000 and today you will need 6 ounces of gold to purchase 1 unit of Dow. Gold has escalated from $250 an ounce to $1650. It is still quite a way from $10 500 an ounce, but the market could revert back to the old ratio and trigger a substantial increase in the gold price. It would have to multiply by 6 times to get to that level. Investors can therefore rest assure that gold still has a lot going for it and can go up to $10 500 per ounce, considering the gold/Dow Jones ratio alone.

<< Previous    [1]  2    Next >>