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'871 billion' reasons to buy gold: strategists

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    '871 Billion' Reasons to Buy Gold: Strategists

    Published: Thursday, 24 Dec 2009 | 3:34 PM ET Text Size By:

    Will the gold boom continue in 2010? Kevin Kerr, president of Kerr Trading International, and James DiGeorgia, author of "The Trader's Great Gold Rush," offered CNBC their outlooks.

    Kerr sees both fiscal and monetary policies driving gold yet higher:

    "The Senate just gave us 871 billion more reasons to buy some gold," Kerr declared (presumably referring to the $871 billion health care bill passed by the legislature Thursday).

    "The excess printing of money, the issuing of Treasurysthis is going to continue into 2010," he added. "And the unwinding of the dollarthat trend will continue into 2010 and beyond."

    DiGeorgia agreed with Kerr's diagnosis and added his own further reasons for gold bullishness.

    The supply/demand fundamentals are also very important. We've heard about 'peak oil'well, we're at 'peak gold' now in production," DiGeorgia said.

    "I expect gold to hit $1,500 [per ounce] this coming year. I did predict $1,200 when it was trading at $700-and-change in July."
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