Ben Davies: Gold Is Worth $6,000

TBI ^ | 6-25-2012 | Matthew Boesler

[blam]

Ben Davies: Gold Is Worth $6,000

Matthew Boesler
Jun. 25, 2012, 7:56 AM

Ben Davies, CEO of Hinde Capital, spoke to King World News yesterday giving his thoughts on where gold is headed next. He is somewhat bearish, saying gold could fall over 10 percent to around $1400 per ounce as Europe continues to muddle through its crisis.

Davies told King World News:

If you look at it on a relative basis, gold has maintained its purchasing power. It’s done exactly what it should be doing. Short-term I am concerned that we could be going down to $1,400. Yes, that’s a real risk in this environment...

Unfortunately, the way it’s going we’re just constantly protracting out this problem. So while that’s happening and the solutions are completely wrong, the risk is this constant weight of deleveraging, and that is weighing on all assets.

However, Davies is still bullish on gold as a long term play, saying that Asia is still a major buyer and that gold could go above $6000:

But people are ultimately exiting out of these fixed income assets, this sovereign debt, and they are going to be going into gold. I can see that the Asian demand is still very palpable. In fact it’s increased from last year quite dramatically. That is the buyer in the market. The question is, will they (China) be there over the summer months?

Look, if you were to run M4, M3 numbers, etc, and assert a value to gold on an appropriate metric relative to that, obviously gold would be at stupendous prices. I believe that gold has considerable room to go to the upside, four or five times (Gold price above $6,000). I think that’s not an inappropriate suggestion.

[Kozak]

Which can all be purchased with PM’s in 99. .9 % of economic conditions. Or are you only assuming TEOTWAWKI, Zombie Apocalypse, Road Warrior fantasy as the ONLY POSSIBLE alernative to Buisness as Usual?

[MrEdd]

Wow. You came up with the assertion that most Jews made it out. That the gold helped, rather than simply being seized by the German government. what a historian you are.

PubliK Skules shur was guud 2 U. U is highly learnt, Jethro.

Meanwhile, back in reality: The world is a scary place and while precious metals may be durable, they are often worth jack sh!t in the face of famine, war, disease, and death.

If we have a collapse, I dont give a crap about your metals. A functional MOPP Suit that fits me or a family member on the other hand, I could bargain for.

[agere_contra]

You have resorted to shrieking incoherent abuse at other posters who disagree with you.

This isn’t advancing your position - such as it is.

[Kozak]

Hey genius, I said there are lots of stories, your little retard mind overloaded and came up with “ most”. Learn to read, then you can converse with adults.

[Why So Serious]

Mr. Edd, you said ... Gold has been periodically overvalued, and that value has crashed upon occasion for five thousand years.

Gold may have periodically been overvalued and may have crashed based on its exchange rate to the FIAT currency of its time. My statement was that it has held a consistent purchasing power. That is true with may an exception to 3 years back in 1979-1982. Hold on to your dollars, they will ALWAYS be worth something.