Contributors to Barron’s recent Roundtable 2013 had high expectations for gold despite its somewhat lackluster performance last year, with Felix Zulauf, president of Zulauf Asset Management AG in Switzerland recommending gold again and talking about its prospects for record prices above $2,000 an ounce.
“Gold is at the very end of a cyclical correction and the gold price will be up and running again soon,” said Zulauf. “Once gold surpasses $1,800 an ounce, it will run to the low- to mid-$2,000s.”
On Tuesday, gold for February delivery .bgChannel, .bgRealtimeChannel, .bgRevision { display: none; } /quotes/zigman/4331913GCG3+0.12% traded at a high above $1,695 an ounce on the Comex division of the New York Mercantile Exchange. Prices finished last year with a 7% gain, its smallest yearly increase since 2008.
Gold has been “great for 12 years, but it doesn’t always go up,” said Fred Hickey, editor of The High-Tech Strategist in Nashua, N.H., pointing out that in the latest 12-year period, there have been five corrections in the gold price.
But “you have to be in gold,” he said, noting that central banks of Mexico, Brazil and Korea are buying large quantities of gold. “They know that all the developed-market currencies are on a path to destruction.”
–Myra Saefong
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