February 24th, 2009
Chris Wood is a person who has predicted US Mortgage Crisis back in 2003. He is a managing director and chief strategist of the broking firm CLSA.
His latest prediction is that, by 2010, gold prices will quadruple to $3500 (per ounce) from the current $994 (per once) price. That’s some news!
The collapse of securitization is a much more deflationary situation in the U.S. than anything seen in Japan when the bubble collapsed in the early 1990s…
Gold may be the safest haven for investors as policy makers accelerate responses to the crisis, devaluing currencies versus hard assets such as gold in the process, said Wood. Gold is likely to more than quadruple from the current level of $986 per ounce currently to $3,500 in 2010, he said. Bloomberg
Back in Malaysia, Datuk Husam Musa, Kelantan Exco suggested that Malaysia should convert its reserves from foreign currencies to gold dinar.
“Malaysia can obtain as much as RM162.6 billion ($1 = RM3.6) for this year if the reserves were in the form of gold dinars following the rise in the price of gold globally.
“If we follow the current value, one gold dinar is worth RM518 with the lowest value being one Dirham (RM5),” said the Kelantan State Exco, Datuk Husam Musa in tabling a working paper at the Gold Dinar Seminar 2009 at University Malaysia (UM) here today.
“The price of one gold dinar this year increased 11.07 percent to RM512.20 compared to RM461.15 last year,” he said. Bernama
Should you invest in gold?
According to Chirstopher Wood investing in gold may be “the safest haven for investors”, and many other economists share the same opinion. Here is the graph of gold prices for the last 10-years. Having said that, do your own research and seek professional advice if you are serious about investing in gold.