Silver Bars Direct

10 November 2011 17 views No Comment Email This Post

With the failure of Italy and the European Union imminent, Dr. Peter Morici, professor of economics at the Richard Smith School of Business at the Univesity of Maryland is calling for gold prices to hit $3,000 per ounce.

“With the implosion of Italy,” says the University of Maryland’s Peter Morici, “Portugal and Spain would not be far behind, and French debt will come under closer scrutiny. At that point, investors will stampede from the euro-denominated debt of most governments, but with rates so low on U.S. Treasuries and too little Japanese and Chinese sovereign debt in open circulation, gold would become the asset of choice.”

“Moreover, all this could easily unfold as the supercommittee in the U.S. Congress races toward a stalemate on an acceptable combination of tax increases and spending cuts. With such dysfunction in Washington, investors would realize that U.S. debt, though still manageable, is racing to an unsustainable level mighty fast, and would start fleeing Treasuries.”

“At that point, nothing is left but gold.”

According to his bio on the University website,

Professor Peter Morici is a recognized expert on economic policy and international economics. Prior to joining the university, he served as director of the Office of Economics at the U.S. International Trade Commission. He is the author of 18 books and monographs and has published widely in leading public policy and business journals including the Harvard Business Review and Foreign Policy. Morici has lectured and offered executive programs at more than 100 institutions including Columbia University, the Harvard Business School and Oxford University. His views are frequently featured on CNN, CBS, BBC, FOX, ABC, CNBC, NPR, NPB and national broadcast networks around the world.

Research Interests: International economic policy and commercial agreements, World Trade Organization.

So he’s not some quack on the radio. He actually might know a thing or two about economics.

If gold hits $3,000/ounce, where do you think silver will end up? My guess is somewhere north of $150/oz.

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