Nouriel Roubini, professor of economics at New York University's Stern School of Business and chairman of RGE Monitor, is clearly not a “gold bug.”
"I don't believe in gold," Roubini told CNBC. "Gold can go up for only two reasons."
"[One is] inflation, and we are in a world where there are massive amounts of deflation because of a glut of capacity, and demand is weak, and there's slack in the labor markets with unemployment above 10 percent in all the advanced economies.”
The only way gold can go higher in a deflationary economy is a financial Armageddon, Roubini says, but we've avoided that tail risk as well.
“So all the gold bugs who say gold is going to go to $1,500, $2,000, they're just speaking nonsense,” Roubini asserts.
Though he acknowledges that gold can go above $1,000, Roubini says it can't move up 20-30 percent unless we end up in a world of inflation or another depression.
“I don't see either of those being likely for the time being. Maybe three or four years from now, yes. But not anytime soon."
Gold prices fell for the third day in a row on Tuesday as the U.S. dollar continued to strengthen.
"The dollar is strong today, and gold has been trading against the dollar," Joe Foster, portfolio manager for the Van Eck Global International Investors Gold Fund, told CNN Money.
Foster says prices could continue to decline for the next few weeks before climbing anew next year.
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