$1500 Gold in 2010 - $2000 Gold in 2011?

Every morning as I awake, I tune into Fox Business and CNBC to catch breaking news, metals prices, bond yields, currency values, etc.This morning I happened to catch an appearance by Byron Wien, Vice Chariman of Blackstone Advisory, as he commented on oil and gold and their foreseeable values.

To the point, he said oil is headed for $100 per barrel by year-end and gold is headed for $1500 an ounce.With respect to oil, he reasons that because oil production today, merely matches global consumption, increasing demand from China and India alone will create a growing shortage.It's that simple.Today each American consumes an average of 25 barrels of oil each year.The Chinese currently consume two barrels per citizen and India consumes less than one.

Both of these economies are growing at tremendous speed and so is their need for oil.The more they consume the greater the shortfall of production against demand.

His comments on gold centered on the desire of investors and consumers to preserve purchasing power against all currencies.I am paraphrasing somewhat, but comments were generally that it is not just a dollar issue as all major currencies are being devalued through the creation of stimulus.In other words inflation is not just a U.S. dollar issue, it's a global issue.Imagine an entire world now using gold as an inflation hedge.

When that happens, then it's all about oil supply and demand and gold supply and demand.And with this latest gold price prediction, $1500 an ounce by year-end seems to be a consensus number amongst many experts.It's getting interesting and easier to see $2000 gold in our future.

One more interesting note: Before Wien made his comments, the spot gold price languished in the negative this morning.Post comment, gold rose $10 or so and has quietly arrived at a level right now above $1145 an ounce up nearly $100 an ounce over the last two months.Stay tuned.