In November 2009, when gold traded for about $1,100 an ounce, money manager Barry Ritholtz wrote that his "intermediate target" price for the metal was $1,350 an ounce. Gold reached that level on Oct. 7 and hit $1,368 an ounce on Oct. 13. So where does Ritholtz, chief executive officer of FusionIQ, see it going? He considers three ways of valuing gold, shown below. "All three of the metrics suggest [gold] has not yet reached its highest potential price," Ritholtz says. "Slapping a $2,000 target is not unreasonable, and breaching its inflation-adjusted target of $2,358 is also possible." He adds an important caution: "Gold fever has risen to the point of excess," and gold shouldn't account for more than 5 percent of your portfolio.
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