July 8th, 2008
In a CNBC special feature this morning discussing solutions to America’s energy crisis, Boone Pickens (and Byron Wein, Chief Investment Strategist at Pequot Capital) predicted higher gold prices as Chinese and other large holders of US dollars “look for alternatives”.
Why? Their extensive dealings with investors around the world reveals they are beginning to feel “skiddish” about the size of the $US holdings and looking for alternatives. Gold was the first and only alternative they mentioned.
During the interview, Boone and Byron make it pretty clear they’ve been around and seen it all, including the oil shock of the early 70’s. As such, when they speak we should listen. To this end, you can view clips of his extensive energy solutions on Squawk Box this morning. Some interesting tidbits:
Wow. China clearly has years of increased oil consumption in front of it.
Regards,
George
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