Peter Munk: How Soon Will Gold Break Through $1,000?



Barrick Gold Corp. Chairman Peter Munk talked to Bloomberg's For the Record at Davos this past week and raised some alarming points. Munk said that in 25 years in the gold business, he has never fielded the amount of calls of wealthy investors who wanted to buy gold bullion to put in their safes at home. "This is a situation in which people have concerns about the dollar currency," he said. The fear concerns whether or not there is an underpinning in the GDP to support the massive Obama stimulus plan. From Bloomberg:

"Munk, founder of Toronto-based Barrick, the world’s largest gold producer, said he has received an increasing number of calls from wealthy investors looking for ways to buy bullion. While that is positive for the metal market, it is a 'sad part of a civilized society,' Munk said.

"'That’s not where you want to be, it’s alarming,' he said today in an interview from Davos, Switzerland, where he is attending the World Economic Forum. 'Do I personally believe gold will break through $1,000? It’s not a question of if, it’s a question of how soon.'"

Gold is typically favored during times of economic turmoil. That having been said, from Marketwatch, gold "3.5% last week to end at $927.30 an ounce, the highest level since July .. Gold futures fell Monday for the first session in three, dropping from their highest level in six months as a stronger dollar reduced the metal's appeal as an investment alternative."