From Market Oracle
By Barry Elias
''At this time, gold seems to be the most effective candidate based on its economic diversification. Silver would be a likely addition in the future.
The demand for gold has been increasing significantly. Currently, there are significant public and private financial resources available to satisfy this increase in gold demand. These resources include sovereign currency reserves of nearly $12 trillion and private financial assets of $200 trillion. Investment in gold represents only 0.2% (2/10ths of 1%) of private financial assets and 10% of sovereign currency reserves.
Future portfolio allocations that provide greater weight in gold seem very likely. Recently, many governments have made large gold acquisitions, especially China.
A decade or two is a plausible and realistic time frame for this to occur. During this time, I expect the price of gold to reach $4,000 per ounce.
The lack of confidence in undercapitalized fiat currencies is accelerating at a rapid pace. Stable, long term economic prosperity is predicated on a different global reserve currency.''
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