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Nouriel Roubini is Strongly Bearish on Gold

Nouriel Roubini forecasts gold to drop below 1,000 $ an ounce by 2015.

If we look around - a large number of financial institutions are lowering their forecasts for gold.

Here are several of Roubini's reasons why he believes gold will continue falling (please note - these are not exact quotes, but extracts, conclusions following the economist's remaks):

 some governments are selling gold in order to cope with debt

 gold generally gains popularity in extreme crises, but from what we can understand from Roubini - these "extreme times" are already over, many economies are recovering

 central banks seem to tackle inflation pretty well - and inflation would have been one of gold's strongest driving forces

 gold was over-publicized, which caused a "boom" during past years, a rush towards bullion, but that seems to be over now

Indeed - these are good points, but no-one can affirm that gold will "stay down", once it dips. Gold will most likely spike once it reaches "rock bottom".

Legendary investor and economist, Jim Rogers believes a 35-40 % correction is normal in the precious metal market.

It remains to be seen whether we are in a dreadful crash that will destroy gold's high price or, whether this is a mere "natural correction".

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