Photo: World Gold Council
King World News spoke with Jean-Marie Eveillard, head of First Eagle’s $60 billion investment fund, and he is swinging for the fences on the price of gold….gold is a substitute currency, and I look at the enormous amount of paper that continues to be issue by the Fed and the ECB, and as long as they keep printing enormous amounts of paper, I think gold cannot be overvalued.
There is one individual who, in terms of the backing that would be necessary for the enormous amount of paper that has already been issued, thinks that as of today the amount of gold should be at $15,000 an ounce.”
He said his bullishness on gold was further reinforced by New York Fed Governor Bill Dudley’s comments earlier this week that worries about a Fed-induced inflation surge are “misplaced.”
That’s positive for the price of gold because it means that the inflationary potential will be greater than one would have expected than if Bernanke would have said we will be very careful to prevent inflationary forces from taking over.
And as for gold’s recent pullback?
While it may remain unpopular, Eveillard sees it as “truly a substitute currency. “
Gold stood at $1,751.95 in early morning trading.
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