Christian Baha, the head of Austrian fund firm Superfund and representative of the hedge fund industry in Oliver Stone movie Wall Street 2: Money Never Sleeps, is predicting that the gold price could rise to between $3,000 and $5,000 over the next five to 10 years.
Baha, who says he has more than half his personal wealth in gold and silver, either physically or in units in Superfund funds denominated in the precious metals, believes that an unprecedented phase of quantitative easing by central banks is driving a bubble in government bonds, but that gold offers real value.
“Do you think paper money has any intrinsic value? I don’t believe so. Gold has real value,” Baha said in a recent interview.
“If gold goes down to $1,200 or $1,000 then I’m going to buy more. I really don’t care. They’re just printing new money.”
Gold fell around 5.2 percent on Friday April 12 and a further 8.4 percent on Monday April 15 – the biggest two day drop in 30 years – as investors fretted over a possible 400 million euro gold sale by debt-laden Cyprus and the possible ending of the U.S. Federal Reserve’s bond-buying stimulus by the end of the year.