Peter Hambro: gold prices to surge as trust in currencies falls

Gold price may reach up to $5.000 per ounce if the debt crisis gets worse and people begin to panic predicts Peter Hambro, founder of one of the largest gold producers in Russia Petropavlovsk plc.

However, Mr. Hambro says a more realistic forecast for the nearest future is “somewhere between $1.850 – $2200, somewhere around $2000 on average for 2012”.

Peter Hambro believes that as the debt crisis escalates and the euro along with the dollar drop, gold will turn into a safe asset gaining in value.

“There is so much uncertainty, financial uncertainty in Europe, the need to stimulate American economy is being done in effect by printing money. There is political instability in Syria, in Iran and it’s causing a lot of problems. The financial imbalances between the West and China and India are causing the system to creek as well. The only way to solve these issues is for money, the Dollar, the Euro to be devalued against real assets”, says Peter Hambro....more