Rickards: Gold Could Ultimately Surpass $9,000 an Ounce +
Rickards: Gold Could Ultimately Surpass $9,000 an Ounce Thursday, 02 Jan 2014 11:14 AM By Dan Weil Gold will reach $7,000 to $9,000 an ounce or possibly higher in the "intermediate" term, thanks to the dollar’s weakness, says James Rickards, senior managing director of Tangent Capital Partners. The move won’t happen right away, he tells Bloomberg. Gold fell 28 percent in 2013 and could drop further before the rally begins. But ultimately, the precious metal is headed higher, Rickards contends. "That really is the inverse of the collapse of confidence in the dollar. The Treasury, the Federal Reserve and other central banks will have to return to gold to restore confidence." Physical demand for gold is extremely strong right now, while "the supply of gold is disappearing," Rickards notes. The massive SPDR Gold Shares exchange-traded fund is selling gold, which is a bullish sign. "It’s going straight to China, where it’s being put underground and will never see the light of day for 300 years," Rickards states. "China is redefining the global gold market," he adds. It’s purchasing all it can "overtly and covertly" through smuggling and military channels, Rickards says.