$15,000 an ounce for gold would not be absurd: Eveillard
Storied investment guru Jean-Marie Eveillard says frenzied money printing by central banks and Neo-Keynesian stimulus programs adopted by governments around the world could jointly push the price of gold to $15,000.
In an interview with King World News the value investor who oversees $60 billion in funds says that the vast amount of money printing and stimulus spending by major economies around the globe has failed to prevent world markets from weakening, with Asia the latest to succumb to economic malaise in spite of "Neo-Keynesian policies."
In Eveillard's opinion, the aggressive monetary policies pursued by the US Federal Reserve and the ECB as well as ubiquitous Keynesian spending programs of dubious efficacy will continue to provide gold with tremendous upside.
In the French investment veteran's own words "a price of $15,000 an ounce for gold would not be absurd."
Eveillard also observes that mining shares, which have underperformed bullion by a large margin for so long, may have already entered a major correction phase:
I would also add that I think the mining shares, of course it was impossible to determine the timing, but they had been lagging the price of bullion for so long, and in such a major way, that we knew at some point they had to outperform. It’s quite possible that a week and a half ago we got to that point.