Given the current economic environment, what is your forecast for gold?
David & Bob Wiedemer
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Announcer: Given the current economic environment, what is your forecast for gold?
David Wiedemer: This is a tricky thing to answer and the reason is that one of the most important influences on the gold price right now is one that we don't really know about. We don't know too much. All we know is that we've had in the past unusual massive sales of gold into the market, which of course plummets the price. This has happened several times and is one of the big reasons gold has stayed down. Recently, we haven't seen this. Even though, based upon past experience we should be seeing this. So, what this means... this does not mean that it's over yet. We don't know that for sure. It's only a matter of time will tell us when it's over, but basically once it's over and people are assured that the gold price for whatever reason is not going to plummet you should see a continuation of this rise. At first, it could be very slow, maybe a hundred points a quarter, I mean a $100 a quarter or so. Or even less, $50 a quarter, but once it gets over $1,400, $1,500, that tells you that whoever was selling huge amounts into the gold market has stopped. At that point, you will see an acceleration. So over a couple of years, you could see prices go beyond $3,000, $4,000 an ounce and then at some point as the markets start to collapse. That's a whole different issue when the timing there, because you have so much money going into this very small asset, some very teeny asset in terms of size, prices will explode. There you could be looking at well over $10,000 an ounce, possibly quite a bit more.
Robert Wiedemer: Nobody wants to be in a bad economic environment, but the reality is bad economic environments happen. Look at the last couple hundred years, you can blame it on this or that, but they do happen. The key for you, as an individual, is to be protected from it. Whether it's bad weather or anything else, ultimately if that storm hits your house, your house needs to be able to withstand it and that's something you really should focus on. That's not being anti-social. That's not being terrible. That's not wishing the weather will go bad, right? We don't want terrible weather, but you need to protect yourself. One way to do that is to have gold. I think it will be a good investment, certainly in uncertain difficult times, which you may be in for. I'm not wishing for them. Nobody's wishing for that. It's just that they do happen and I think the circumstances are setup now that they will. Now, we don't want to think about it. Kind of like life insurance, right? We don't really want to think about why we buy life insurance, but we still do. There's nothing wrong about that. That doesn't mean you're thinking about the end of the world or that you're a gloomy guy just because you buy life insurance. Well, you know the same thing for gold. If you think there may be difficult times ahead, it'd be hard to imagine somebody who will think there will be no difficult times ahead. For all the reasons I've talked about in my book, it could happen sooner rather than later, not immediately, but overall, you should always be prepared.