He sees bullion prices hitting $1,500 in the next year en route to $5,000

"I feel even stronger about my forecast now," Global Resource Alert publisher Peter Krauth says of his prediction of $5,000 gold prices. "There are a few catalysts I expect will bring about a major rise in the price of gold."

Krauth tells Money Morning that gold buying by central banks "could help push gold to $1,500 by late this year or early next."

Krauth reminds investors that summer is traditionally the best time to buy gold. "The next two to four weeks are likely the best time to get positioned in both gold and silver, as both those metals could begin to spike soon after that," Krauth says. "As you know, the fall tends to be the strongest period of the year for precious metals prices. ... Precious metals go through their weakest period in the summer months of June, July and August. That means we could be setting up for an even bigger spike this time around. And that's really exciting."

On inflation: "I'm firmly in the inflation camp. Inflation may not be an obvious threat right now, but it's the only logical outcome, given the recent actions of spendthrift governments."

On big investment banks: "Banks understand that ... long-term ... we're in a spectacular global bull market for natural resources. And they understand that the end of this 'bull run' is nowhere in sight."

On China and India: "The emergence of China, India and the remainder of Greater Asia is unprecedented, so the demand for commodities - from a fundamental standpoint - is rock solid. But I also think we'll need to deal with further financial crises along the way, so gold in some form is a must for all investors, regardless of age."

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