NOURIEL ROUBINI: 6 Reasons Why Gold Will Plunge To $1,000

[thenews]

Gold has been getting poleaxed in recent months, though it remains just below $1400/oz.

In a piece up at Project Syndicate, economist Nouriel Roubini says gold will fall to around $1,000 before the end of 2015.

He gives six reasons why.

We summarize:

• Gold spikes during extreme crises. The crises are over.
• Gold does well during periods when there's a risk of high inflation. That clearly is no longer a big worry, given how much central banks have unsuccessfully tried to stoke even modest inflation.
• Now with the economy recovering, nobody wants to be in rocks that don't pay any dividends.
• Real interest rates are rising. That kills gold.
• Governments with debt issues are selling gold.
• Gold was juiced by right-wing fanatics in the US. That boom is over.

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