Gold to 5000 in 4 years!

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Gold to 5000 in 4 years!

According to Rob McEwen of Goldcorp. Scroll down to the video.

http://financearmageddon.blogspot.com/

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Re: Gold to 5000 in 4 years!

Interesting chart on Gold

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/3_Ou...

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Re: Gold to 5000 in 4 years!

Ran across this today:

http://www.reuters.com/article/idUSTRE67F05920101004?pageNumber=1

Quote:

On the physical markets, gold demand was firm despite near-record prices. Buying by Indian gold jewelers showed no sign of slowing as a strong rupee helped consumers defy record bullion prices during the festive season, dealers said.

A senior official at the World Gold Council told Reuters that central banks in Russia, China and the Philippines are expected to continue raising their gold holdings to balance their reserves, a potentially significant demand driver.

Silver was at $22.04 an ounce versus $21.97.

As a smaller and less liquid market, silver has outpaced the rise in gold prices so far this year, with the gold-silver ratio - the number of silver ounces needed to buy an ounce of gold - dipping below 60 for the first time in nearly a year last week.

Doug

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Re: Gold to 5000 in 4 years! hum how about 15,000

 The world's wealthiest people have responded to economic worries by buying gold by the bar — and sometimes by the ton — and by moving assets out of the financial system, bankers catering to the very rich said on Monday.

Gold
Anthony Bradshaw | Photographer's Choice RF | Getty Images

Fears of a double-dip downturn have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds, UBS executive Josef Stadler told the Reuters Global Private Banking Summit.

"They don't only buy ETFs or futures; they buy physical gold," said Stadler, who runs the Swiss bank's services for clients with assets of at least $50 million to invest.

UBS is recommending top-tier clients hold 7-10 percent of their assets in precious metals like gold, which is on course for its tenth consecutive yearly gain and traded at around $1,314.50 an ounce on Monday, near the record level reached last week.

"We had a clear example of a couple buying over a ton of gold ... and carrying it to another place," Stadler said. At today's prices, that shipment would be worth about $42 million.

Julius Baer's chief investment officer for Asia is also recommending that wealthy investors park some of their assets in gold as a defensive stance following a string of lackluster U.S. data and amid concerns about currency weakness.

"I see gold as an insurance," Van Anantha-Nageswaran said. "I recommend 10 percent as minimum in portfolios and anything more than that to be used for trading purposes, to respond to short-term over-bought or over-sold signals."

Ultimate Bubble?

Billionaire financier George Soros, echoing comments from investment guru Warren Buffett, last month described gold as the "ultimate bubble" because it is costly to dig up and has no real value except its market price.

But a rising price for the precious metal has in itself generated more and more demand from investors looking for a way to hedge against a fresh recession. Gold bears no yield and is uncompetitive in an environment of rising interest rates.

The uneasy outlook for inflation, hard currencies and global growth has triggered a five-fold increase in a physical gold fund launched by Pictet one year ago, the Swiss private bank said.

UBS's Stadler said the precious metal has become a staple of investors' portfolios, despite questions about whether it makes for a smart long-term investment.

"If you talk to ultra-high net worth individuals, that level of uncertainty has never been higher in the last two, three, four years," he said. "If they ask me, 'Is inflation going up or are we entering a deflationary cycle?,' I don't know. But obviously nobody knows."

Anthony DeChellis, managing director of Credit Suisse's Americas private banking unit, said at the Reuters summit in New York that clients are more interested in capitalizing on the rise in gold prices than using the precious metal as a safe-harbor investment.

"They're asking, 'If it's a bubble, how far can I ride that bubble,'" he said. "I cannot say we've seen a spike in gold interest, but there's an interest in the phenomenon of it."

Samir Raslan, Citigroup's regional head for central, eastern and northern Europe, Africa and Turkey, said clients were not going overboard on gold.

"I wouldn't say that clients are over-investing. It's part of an asset allocation, but it's not something that they are deciding all of a sudden," he said.

And not all bankers are recommending exposure to gold.

Andreas Wolfer, head of private banking at UniCredit Group, attributed the run-up in the price of gold to frayed investor nerves after the 2008 financial crisis as well as concerns about sovereign debt in the euro zone.

"We have seen it but we have not overweighted it in our asset allocation," Wolfer told the Reuters summit in Geneva, which has emerged as a major trading hub for precious metals as well as other physical commodities.

"We strongly believe in an asset allocation having a clear and diversified portfolio, which sounds a bit boring but in the end it brings the best returns," Wolfer said.

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Re: Gold to 5000 in 4 years!

Let us not forget silver! Looking for a possible 10 bagger, which would put us at 200 dollars an ounce. This according to Doug Casey.

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Re: Gold to 5000 in 4 years!

Hey nice thread.

This type of updation is helpful..I update it on my site now..

Thanks

 

 

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Re: Gold to 5000 in 4 years!

i am not sure what to think about the gold market.  we trade gold, silver, and other "precious" metals on our system so i see this activity every day.  it looks like a bubble.  however, if debt and energy are the driving factors to a new reality in the global financial system, then maybe it is not a bubble, or maybe it is.  when oil got to 140+ dollars a barrel that was a bubble.  housing was a bubble.  it seems like the rule is whenever something goes up crazily it is a bubble, except when it is not a bubble.  maybe one has to forget the technical stuff and look at the fundamentals - supply and demand.  but supply and demand can change in 24 hours if a lot of people decide it is a bubble and start selling.  i have to say that 5000 does not sound right.

once again, politics and money are intertwined.  if the next 2 election cycles bring responsible normal people back into the US federal government, and the world sees we are taking reasonable steps to solve our problems (debt and energy) then gold will tumble.  it could fall a long way real fast - a bubble.  if the world sees we are not going to spend crazily, we are not going to have goofy wars, and that we are taking prudent steps to get our house in order and get our situation under control, then the dollar will rise and gold will fall.

we have to take a leadership position.  we simply must act to place people in government who will make decisions for america that will bring stability.  some of those decisions are going to be tough.  getting rid of millions for strawberry research is easy and only proves we can stop non-sense spending.  closing down the iraq war and bringing our remaining 50,000 people home will be tough.  there would be a lot of pressure to leave a substantial presence in iraq from many quarters.  the tough decision would be to get on TV and state that we can no longer afford to keep 50,000 people in iraq and we are bringing  them home.  what about the 35,000 in korea ?  what about the military in europe - do they really need to be there.  we should fund an advanced, very mobile, an powerful military.  we should not be so quick to put it to use.

no, it is politics and money as usual.  if the world believes we have our act together then gold will all of a sudden look like a bubble at 1800 dollars a ounce 6 months from now and it will take a dive.  if the world believes we are unable to to manage our affairs in a prudent manner and we do not have our act together, then gold will continue to go up.  that is how it seems to me.

 

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Re: Gold to 5000 in 4 years!
dshields wrote:

  if the next 2 election cycles bring responsible normal people back into the US federal government, and the world sees we are taking reasonable steps to solve our problems (debt and energy) then gold will tumble. 

 

So there you have it. Gold must soar.

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Re: Gold to 1650 in 12 months, according to GS

If you can believe GS:

http://www.kitco.com/reports/KitcoNews20101012AS_GLMN.html

Quote:

“With U.S. real interest rates pushing lower off the slowdown in the pace of the U.S. economic recovery and the growing prospect of another round of quantitative easing, we expect gold prices to continue to climb,” said the Goldman report, authored by David Greely and Damien Courvalin. “Despite the rebound in net speculative length, it remains well below levels consistent with the current low U.S. real interest rate environment.”

Goldman said the decline in U.S. real interest rates is likely to persist, and rates could push even lower in the near term should the Federal Reserve undertake quantitative easing measures. Thus, Goldman said it is raising its gold price forecasts to $1,400, $1,525 and $1,650 on a three-, six- and 12-month horizon. Goldman said its updated forecasts point to an average of $1,575 an ounce in 2011, which is $175 higher than it previously expected.

Sounds good to me.

Doug

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Re: Gold to 5000 in 4 years!
dshields wrote:

ionce again, politics and money are intertwined.  if the next 2 election cycles bring responsible normal people back into the US federal government, and the world sees we are taking reasonable steps to solve our problems (debt and energy) then gold will tumble.  it could fall a long way real fast - a bubble.  if the world sees we are not going to spend crazily, we are not going to have goofy wars, and that we are taking prudent steps to get our house in order and get our situation under control, then the dollar will rise and gold will fall.

 

While your premise that responsible government will restore confidence in the economy and thereby reduce the price of gold is valid in theory, it's clear, to me at least, that it won't happen in two election cycles. The massive debt monster that was decades in the making won't be slain in such a short time. There's no quick fix.

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Re: Gold to 5000 in 4 years!

Of course the question really is if the purchasing power of the PM's will also be higher or essentially the same. The famous example of a good suit always having costed an ounce of gold...

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Re: Gold to 5000 in 4 years!

This is something that I have been following for a while and I am invested well in gold already, but all the headiness about the potential for gold depends on a weakening dollar. The major question not being answered for me is, OK, so gold goes to $5000, but if the dollar is effectively at 0 what will I get if I sell my gold? Since I can only sell it in the US as a US citizen and resident, for dollars, is the value of my gold relative and meaningless? It is worth something on the market, but as Americans we won't have access to the global markets, will we? 

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Re: Gold to 5000 in 4 years!

This is something that I have been following for a while and I am invested well in gold already, but all the headiness about the potential for gold depends on a weakening dollar. The major question not being answered for me is, OK, so gold goes to $5000, but if the dollar is effectively at 0 what will I get if I sell my gold? Since I can only sell it in the US as a US citizen and resident, for dollars, is the value of my gold relative and meaningless? It is worth something on the market, but as Americans we won't have access to the global markets, will we? 

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Re: Gold to 5000 in 4 years!
earthwise wrote:
dshields wrote:

ionce again, politics and money are intertwined.  if the next 2 election cycles bring responsible normal people back into the US federal government, and the world sees we are taking reasonable steps to solve our problems (debt and energy) then gold will tumble.  it could fall a long way real fast - a bubble.  if the world sees we are not going to spend crazily, we are not going to have goofy wars, and that we are taking prudent steps to get our house in order and get our situation under control, then the dollar will rise and gold will fall.

 

While your premise that responsible government will restore confidence in the economy and thereby reduce the price of gold is valid in theory, it's clear, to me at least, that it won't happen in two election cycles. The massive debt monster that was decades in the making won't be slain in such a short time. There's no quick fix.

i completely agree.  i purposely did not state a time line - only my opinion of what the trend would be.  i know there are people on here who do not like heritage and i understand their point of view.  heritage can slant stuff to the right but, someone there took some time and created some graphic data so make it easy to see the debt trends.  i examined the numbers and while one might argue about it here and there their stuff in this case seems reasonable.  there is so much data that i need graphs to look at it as i do not have the time myself to boil it all down.  the data is scary.  there is a debt monster for sure - check it out.

http://www.heritage.org/budgetchartbook/

i do not see how gold can go to 5000 USD and stay for any length of time.  that would signify a massive collapse of truly epic proportions.  i suppose anything can happen but a collapse of that magnitude seems unlikely at this point.  besides, in a disaster of that size, who are you going to sell your 5000 USD gold to anyway ?  You can't eat gold.

 

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Re: Gold to 5000 in 4 years!
grackle wrote:

This is something that I have been following for a while and I am invested well in gold already, but all the headiness about the potential for gold depends on a weakening dollar. The major question not being answered for me is, OK, so gold goes to $5000, but if the dollar is effectively at 0 what will I get if I sell my gold? Since I can only sell it in the US as a US citizen and resident, for dollars, is the value of my gold relative and meaningless? It is worth something on the market, but as Americans we won't have access to the global markets, will we? 

If the dollar dies there will be a replacement. It is not clear yet what that replacement will be but it may be gold backed or it may be something else. In any case your gold/silver may be used directly to buy things or it may be that you will need to convert the gold/silver to whatever replaces the dollar. Still your gold/silver will serve you much better than a truck full of FRN's.

 

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Re: Gold to 5000 in 4 years!
Ken C wrote:
grackle wrote:

This is something that I have been following for a while and I am invested well in gold already, but all the headiness about the potential for gold depends on a weakening dollar. The major question not being answered for me is, OK, so gold goes to $5000, but if the dollar is effectively at 0 what will I get if I sell my gold? Since I can only sell it in the US as a US citizen and resident, for dollars, is the value of my gold relative and meaningless? It is worth something on the market, but as Americans we won't have access to the global markets, will we? 

If the dollar dies there will be a replacement. It is not clear yet what that replacement will be but it may be gold backed or it may be something else. In any case your gold/silver may be used directly to buy things or it may be that you will need to convert the gold/silver to whatever replaces the dollar. Still your gold/silver will serve you much better than a truck full of FRN's.

 

If you have a fund overseas, you can sell it in any currency. I use "Goldmoney.com" there are others. Jon

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Re: Gold to 5000 in 4 years!

 

For gold to reach $5000/oz. would require a quadrupling of price, which wouldn't necessarily require a collapse. It quadrpled in the last decade without the currency collapsing. Admittedly, though, whatever causes a spike like that wouldn't be pretty. But it doesn't make sense to me that the dollar would go to zero. Rather it would devalue a commesurate amount; i.e. the price of everything would quadruple (or more) just like gold. That would mean $12+ for a gallon of gas or milk, $80 to $100 for a pizza etc. I found an interesting perspective on this here:

http://www.coloradogold.com/archive/Barter-319.html

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Re: Gold to 5000 in 4 years!
earthwise wrote:

 

For gold to reach $5000/oz. would require a quadrupling of price, which wouldn't necessarily require a collapse. It quadrpled in the last decade without the currency collapsing. Admittedly, though, whatever causes a spike like that wouldn't be pretty. But it doesn't make sense to me that the dollar would go to zero. Rather it would devalue a commesurate amount; i.e. the price of everything would quadruple (or more) just like gold. That would mean $12+ for a gallon of gas or milk, $80 to $100 for a pizza etc. I found an interesting perspective on this here:

http://www.coloradogold.com/archive/Barter-319.html

before you ever get to 12 USD a gallon for gas everything, and i mean everything, would implode.  it would be remarkable.  LogansRun is probably right, the dollar would be devalued and replaced.  you would be paying for everything in Bancors.  it is hard for my brain to grasp that for some reason.  just go back a couple of years to when regular gas got to 4 USD a gallon - things started to come unglued.  there was rapid inflation of food and other necessary things.  thankfully, that bubble popped and prices went back down but not all the way down to where they were before the oil spike.  at 4 USD a gallon people were having trouble buying enough gas to actually go to work and do necessary activities.  6 USD a gallon would bring on social chaos and direct government action.  when the people can not afford to drive to work or buy food there will be real trouble.  you can count on it.  direct government action is a guarantee.  At a minimum the government would have to deploy military and/or para-military units to cities to stop the riots and looting.  other government actions would follow.  possibly the confiscation of gold ?  it happened in america before and it could happen again.  your bank accounts being converted to Bancor overnight ?  if i owned a bunch of gold right now i think i would hide it.  if there was a paper trail that proves you have it that might be bad.  deep hole in the back yard ?  maybe keep it outside of america ?  i do not trust the politicians.

 

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Re: Gold to 5000 in 4 years!
dshields wrote:
earthwise wrote:

 

For gold to reach $5000/oz. would require a quadrupling of price, which wouldn't necessarily require a collapse. It quadrpled in the last decade without the currency collapsing. Admittedly, though, whatever causes a spike like that wouldn't be pretty. But it doesn't make sense to me that the dollar would go to zero. Rather it would devalue a commesurate amount; i.e. the price of everything would quadruple (or more) just like gold. That would mean $12+ for a gallon of gas or milk, $80 to $100 for a pizza etc. I found an interesting perspective on this here:

http://www.coloradogold.com/archive/Barter-319.html

before you ever get to 12 USD a gallon for gas everything, and i mean everything, would implode.  it would be remarkable.  LogansRun is probably right, the dollar would be devalued and replaced.  you would be paying for everything in Bancors.  it is hard for my brain to grasp that for some reason.  just go back a couple of years to when regular gas got to 4 USD a gallon - things started to come unglued.  there was rapid inflation of food and other necessary things.  thankfully, that bubble popped and prices went back down but not all the way down to where they were before the oil spike.  at 4 USD a gallon people were having trouble buying enough gas to actually go to work and do necessary activities.  6 USD a gallon would bring on social chaos and direct government action.  when the people can not afford to drive to work or buy food there will be real trouble.  you can count on it.  direct government action is a guarantee.  At a minimum the government would have to deploy military and/or para-military units to cities to stop the riots and looting.  other government actions would follow.  possibly the confiscation of gold ?  it happened in america before and it could happen again.  your bank accounts being converted to Bancor overnight ?  if i owned a bunch of gold right now i think i would hide it.  if there was a paper trail that proves you have it that might be bad.  deep hole in the back yard ?  maybe keep it outside of america ?  i do not trust the politicians.

 

Gold won't be confiscated--it's the last resort of bubbled out oligarchs everywhere. Governments won't be able to employ paramilitary or soldiers. The criminal justice system will go vigilante, voluntary. The Blackstone mercenary in the sexy swat team unform, will be handwashing his underwear in some stream, just as messed up as anyone else. Local "small claims" courts will be outfitted with portable guillotines, racks, and a guy called Guido, ready to rehabilitate the he** out of you.

Just because it "can't happen here" doesn't mean it won't happen here. Happened in Russia.

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