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Larry Berman/John Kaiser

BNN.ca

Larry Berman and John Kaiser at the table discussing geopolitical risk and 'parabolic' gold prices. John Kaiser provides the most cogent comparison that Gold/World GDP is low compared to 1980 gold prices, which were @24% of world GDP then and gold prices are @merely 12% of World GDP presently.

The outlook is that gold prices could obtain a scenario of $3200/oz. at the peak, but once obtained will back off from that price to stabilize into an average about. Mining stocks stand to gain once the gold bull market blows off.

John Kaiser's outlook is probably strongly commensurate with the forecast @RealTerm.de, which forecasts ~3000/oz., which would indicate a major shift in forex valuation at the same time.

One thing people tend to forget is that investors might actually stand to gain through dividends, if the equities underperform(and they have.) I think this should be where the strategy should reside with the miners, favouring robust narrow vein underground projects, and relying on dividend payouts as their investment formula, rather than promote 'pie-in-the-sky' bulk tonnage projects.

Assuming an average of ~$1800/oz. once obtained in the coming weeks and months through the next major correction is not crazy or outlandish. Mr. Kaiser builds a strong argument that gold projects are priced where they are because the market is behind the curve, only attributing ~$1200/oz. on average to gold mining projects.

BTW, they grossly overemphasize geopolitical conflict, that it will ensure higher prices. This is a completely wrong. IF there is a major geopolitical conflict, prices will likely become depressed. It might SOUND as if geolpolitical conflict with result in higher gold prices, as you can present a logical case, but this is mostly irrational rhetoric.

http://watch.bnn.ca/bermans-call/march-2012/bermans-call-march-5-2012/#clip631591

http://watch.bnn.ca/bermans-call/march-2012/bermans-call-march-5-2012/#clip631599

-F6

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