Nick Barisheff Undeterred By Recent Drop

How's this for steadfastedness. In a speech to the Empire Club of Canada, Nick Barisheff said gold would soon reverse and could end up at $2,000 by the end of 2011.

Mr. Barisheff believes the price of gold will climb to US$1,700 to US$2000 per ounce over the next twelve months, representing a gain of at least 20% from the Dec 31 close of US$1420.

“Without any new financial crisis, both mid-term and long term trends are in place to ensure gold and silver will continue rising through 2011 and well beyond,” he said Wednesday at the Empire Club of Canada’s 2011 investment outlook luncheon in downtown Toronto,

The catalysts that will impact gold nearer term include a weaker U.S. dollar, increasing demand for gold in China, both official and public, and more central bank buying by most of the BRIC nations.

“[They] need to acquire gold to bring their gold reserve ratio to outstanding currency closer to Western central banks,” he said....

He also noted three longer-term trends that will continue to push gold up: peak oil, outsourcing and an aging population. All three will tend to push up trade and fiscal deficits, leading to pressure on governments to inflate. They'll also crimp GDP, leading to long-term stagflation.