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Should your ring in the new year by investing in gold fell big time today by more than 25 dollars an -- trading well below 17100 dollars.
What report out today even suggest that the precious metal will slumped to 12100.
Dollars by the end of next -- but our next -- Sees it jumping in 2013.
Even says gold is one of his top picks steel vine investments founder.
Chief investment officer Spencer -- joins us now spreads are great to see yet.
Listen I've I've noted -- long enough to know that you're right more often -- Iran but let me just paid out this.
Gold 12100 dollar scenario for your for second you get your reaction that this is how it works they say one the fiscal cliff doesn't happen it looks like it may have -- something today lord knows too.
Hedge fund captures a lot of hedge fund cash it's been on on the sidelines once a fiscal cliff is -- that money's gonna come into the stock market.
Three that will lead the Fed to be less money printing -- they have been so they'll they'll pull back a little for China.
And India will unload it a lot of their goal because they're gonna wanted to have the cash to build their infrastructure.
And finally President Obama will realize the tax bonanza from -- oil and shell gas.
And therefore lift off the -- have of those two things to the point where we have a lot more oil and gas committed all those things.
Bring us down to gold at 12100 how do you react.
While that that's a really incredible run down but there's one interesting thing that I think will -- knock a hole in the whole theory.
Is that the -- has tied interest rate policy.
To that amount of unemployment that we haven't asked to be at six point 5%.
And what that means is that you're going to get.
Low interest rates that are very bullish for gold and will lead to inflation coming down the road endless money printing.
It doesn't have anything to do with the other parts that we mentioned here west you know with China and all the rest it's going to be tied to getting jobs created.
And and none of those things that they the author mentioned.
I'd create any jobs so well -- Hi there that the one thing that might create jobs is all this money in the sidelines if that money does begin to come in and again.
The one thing that the Fed is assured us is that interest rates are gonna be low at least for the first part of next year which means nobody's gonna get returns.
You're gonna have to go somewhere probably they'll go and a market.
That might revise -- give a lot more capital to companies to expand it may be hire people.
I think it very well could generate a little bit of growth for the economy but I also think that -- hedge funds bring in cash running one myself.
Gold is an investment allocation that makes a lot of sense for hedge funds so I think that if you know that that the gold theory could really benefit that.
As money flows into the market you'll see that from individual investors as well once they get more discretionary income.
And they are fearful of their dollar losing value they'll start buying in the things like gold and silver.
I'm in order for gold to get to 12100 dollars an ounce and I think you'd have to have a deflationary collapse which would be.
I catastrophic I I I think the lowest that I can imagine gold being as at 1550.
At the bottom but I I think will be visiting 202013.
OK and by the way I don't buy into this -- and I gotta say this.
What this theory doesn't take into account as to what Japan has just decided to -- -- to print even more money that were turning right now more yet so there's a whole lot of money pretty going on all over the world.
Well there are a couple of price targets are you mention one with 5050 be kind of the lowest of the low.
But I -- 1662.
Per ounce those two price points are very important to by NY.
Yeah I think what you see on the chart of gold as you see it going sideways -- a trading range and this is really beneficial for gold because a lot of times what happens as you'll see prices go up and then you'll see them consolidate and then you'll see them break out of that range and we've been and that type of trend for gold if you look historically for more than ten years gold has been a very safe investment but you do have some volatile ranges that you can see gold earlier this year we saw a move more than a hundred dollars an ounce -- -- single day.
So I think that once you get further down you start seeing how much buying interest there as.
I but I think that we'll start seeing by an interest in the sixteen hundreds I don't -- -- that will make it down 1640.
Especially as we get this fiscal cliff I resolved I think it's going to be the biggest Y two K type thing ever I don't think the fiscal -- is going to be a big deal at all will get a little bit more confidence back the economy OK and we'll see gold prices -- are very quickly other commodities copper that's directly related to to GDP growth around the world how do you see copper going.
You know I don't have any overly optimistic feeling towards copper I don't think it's something to sell right now I don't think it's something to -- I'm instead I would look at something like our Bob gasoline gasoline prices are as low as they've been and a year.
I will start moving in the seasonally stronger period so by gasoline it's cheap right now -- not necessarily copper.
OK Spencer by the way we've got John take 1550 is the lowest possible price -- -- gonna go in 2013.
We'll bring you out if it goes lower do you mind a look at that absolutely bring -- Spencer Pratt and steel -- investments founder great to see it spends thanks very much play you.
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