Gold is not rising in value, currencies are losing purchasing power against gold and, therefore, gold can rise as high as currencies can fall, says Nick Barisheff, CEO of Bullion Management Group Inc. And, since currencies are falling because of increasing debt, gold can rise as high as government debt can grow, he said in a speech ‘Why Rising Debt Will Lead To $10,000 Gold’ at the Empire Club of Canada’s ‘18th Annual Investment Outlook 2012.’ He said going forward the real game changers will be the pension funds and insurance funds. At this point, they hold only 0.3 per cent of their assets in gold and mining shares. Continuing losses and growing pension deficits will make it mandatory for them to eventually include gold, the one asset class that is negatively correlated to financial assets such as stocks and bonds. When this happens, there will be a massive shift from more than $200 trillion of global financial assets to the less than $2 trillion of privately held bullion.
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