Gold prices forcasted to continue up also.
By Greg Robb, MarketWatch
Last Update: 1:09 PM ET May 27, 2006
WASHINGTON (MarketWatch) -- Flaws in the dollar are going to move the price of gold higher, said James Turk, the founder of Goldmoney.com, in an interview in Barron's magazine.
"There are problems with the dollar, and that's being reflected in a higher gold price," Turk said. "I still fear we are going to see a panic in the dollar at some point."
Turk said the rise of protectionism in the United States has unsettled wealthy international investors.
The price of gold is "going much higher," and the $8,000 per ounce forecast he made a couple of years ago is "probably as good a target as any," Turk said. A near-term spike to $2,000 is possible, he added.
The price of gold will never again go below $500 an ounce, Turk said.
The U.S. government is trying to fund the federal budget deficit without destroying the dollar and trying to raise interest rates to save the dollar without destroying the economy, he said.
"I don't think they can do it," he said.
Greg Robb is a senior reporter for MarketWatch in Washington.
