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Could the price of gold rally to a record high of over $2,000 as central bankers print more money? According to Greg Jenson of Bridgewater Associates, the answer is yes. Jennifer Ablan reports Jenson’s prediction in The Financial Times:
Mr Jensen, who helps oversee more than $160bn at the Connecticut-based group, told the Financial Times he believed the Federal Reserve, in particular, would let inflation run hot for a while and “there will no longer be an attempt by any of the developed world’s major central banks to normalise interest rates. That’s a big deal”.
At the same time, Bridgewater sees political turbulence on multiple fronts as slowing US economic growth exacerbates the divide between rich and poor while tensions rise with China and Iran.
Against that backdrop, Mr Jensen said in a telephone interview that gold prices, now trading at about $1,550 an ounce, could gain 30 per cent and should be considered as a cornerstone of investors’ portfolios.
“There is so much boiling conflict,” he said. “People should be prepared for a much wider range of potentially more volatile set of circumstances than we are mostly accustomed to.”
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