Nouriel Roubini : Gold unlikely to go Back to $1900 | NOURIEL ROUBINI BLOG

Saturday, September 15, 2012

Nouriel Roubini : Gold unlikely to go Back to $1900

Nouriel Roubini : My view is people should be just market weighting Gold , because even if there is more printing of money there is no inflation in advanced economies because there is a slack in goods in liberal market , weak economic growth so that the reason to hold because of inflation is not real , in other situations gold could rise if you have another global financial meltdown but those risks are still limited and actual when turmoil does occur sometimes gold prices fall sharply because you have a credit crunch and people sell the winners and many positions in gold are highly leveraged , so gold has been very volatile , it went up all the way to $1900 in September of last year but then it went down to $1500 and it has been moving in the range between $1500 and $1600 , so to me it's a speculative investment it has gone up so much that significant further increase are unlikely everybody should have it market weighted in their portfolio and I would not recommend over weighting gold - in Reuter Interview
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Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.