Gold Bugs Ready to Rock

He favors AngloGold Ashanti (AU Quote), which he owns, and Barrick Gold (ABX Quote), which he does not.

Jamie Sokalsky, CFO of Barrick Gold, sees the price going through $730, but didn't want to specify further, although he's clearly bullish. In addition to a declining dollar, he sees the political "powder keg" in the Middle East and the added uncertainty of a nuclear North Korea supporting prices.

"If the U.S. pulls out [of Iraq] there could be some additional conflict, and any uncertainty resulting from that could be positive for the gold price," says Sokalsky.

Pierre Lassonde, chairman of the World Gold Council and outgoing president of Newmont Mining, predicts a range of $600 to $800 for gold next year, with an average of around $675.

"I see the dollar continuing to go down against a basket of currencies, including the euro," says Lassonde, who adds that "80% of the value of gold is the dollar."

Other bullish factors include declining mine production and rising investment demand, says Lassonde. He notes the Gold Shares ETF now holds more than 450 tons of bullion, and he's looking for continued investor diversification into the yellow metal.

At the time of publication, Lassonde was long Newmont stock.