David Tice: Gold Heading to $3000 Unless America Hits the ‘Reset’ Button


“We essentially are printing money.”

“Quantitative Easing is debasing our currency.”

“Congress is spending like drunken sailors.”

Among the cavalcade of gold bulls to recently grace Tech Ticker’s stage, David Tice is something of a centrist.

Gold will hit at least $3000 per ounce before the current rally ends says Tice, Federated’s chief portfolio strategist for bear markets. The forecast falls roughly in between Peter Schiff’s $5000 per ounce call and Jimmy Rogers’ forecast of $2000.

With gold hitting yet another new high of $1064 Tuesday and bullish sentiment for the metal soaring, Tice is wary about the potential for a short-term reversal in the dollar down-gold up trend.

“We certainly could have a pullback,” he says. “However, we believe this rally in gold is going to on for a long time.”

As with Schiff, Rogers and pretty much everyone else these days, Tice is concerned about the “debasing” of the U.S. dollar and our reliance on foreigners to fund the deficit.

Unlike others of the Austrian School of economics, however, he does believe the government was right to spend money last year because “we were going through a meltdown.”

But Tice is frustrated that policymakers appear to be trying to prop up a “dysfunctional system” rather than using the crisis as an opportunity to “reset” the U.S. economy.

“We need to get away from a consumption-based economy,” Tice says. “Yes, it’s going to be tough [and] accompanied by very bad economic statistics and a lot of unemployment. Yes it’s going to be painful [but] we cannot simply continue to have foreigners or the Fed buy our Treasuries, agencies and mortgage-backed securities, etc. We have no real choice.”

But with policymakers and politicians seemingly unwilling to make the hard choices, Tice is sticking with dollar alternatives like gold, gold miners (he declined to specify) and foreign currencies, including the euro, Swiss franc, Norwegian krona and Canadian dollar.

Posted Oct 14, 2009 09:00am EDT by Aaron Task

Source: Yahoo Finance

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