Sprott Sees Record Gold in 2012: Corporate Canada | The Victory ...

from bloomberg.com:
Gold will climb to a record by yearend as the global economy slows from the weight of too much debt, says Eric Sprott, the founder and chairman of Canadian fund manager Sprott Inc. (SII)
?I just can?t imagine the demand for gold is going down,? he said in a July 9 interview at Bloomberg?s Toronto office. ?I don?t personally see a solution to the problem that we?re in, the financial leveraging issue that we all have where everybody wants to shed debt and there?s no buyers.?
Sprott?s company manages funds investing mainly in gold, silver, and precious-metals equities. He expects bullion will rise as investors seek the safest assets while governments spend to stimulate their economies, increasing chances that inflation will accelerate.
Gold, which had advanced for 11 successive years, is little changed so far in 2012. It?s 19 percent lower than the record $1,923.70 an ounce traded on Sept. 6 in New York after investors favored buying the dollar amid Europe?s escalating debt crisis.
The metal ?should go to new highs before yearend, that would be my guess,? said Sprott, 67. ?Gold has blown away every financial market in the world since 2000, let?s not forget that.?
Rallying to a record would mean gold climbing at least 23 percent on the Comex in New York, where bullion for August delivery fell 0.7 percent to settle at $1565.30 an ounce today. Gold futures gained 2.4 percent in 2012 through June, the smallest first-half increase since 2007.
?Fundamental Problem?
Sprott declined to make a specific price prediction. Future highs are ?indefinable? because they will depend on decisions by policy makers, he said.
Sprott has previously made predictions that were accurate, or largely so. He said in May 2011 that gold might rise to $2,000 that year. In March 2008 he said banking stocks would collapse. Bear Stearns Cos. was sold to JPMorgan Chase & Co. later that month and Lehman Brothers Holdings Inc. filed for bankruptcy in September.
Keep on reading @ bloomberg.com
houston nutt houston nutt peter marshall peter marshall zombie boy zombie boy harvard yale