[quote=jpinpb]Partypup – gold at 5k?! Are you serious?[/quote]
Deadly serious. Don’t forget: for gold to reach it’s inflation-adjusted 1981 high, it would have to go to $2200/oz.
Now, does anyone on this board seriously think we’re not headed for something much, much worse than the 70s?
I’m not saying that this is coming next year. Probably closer to 2012. But the point is that ALL paper is going *poof*. It’s unavoidable at this point. Gold will be a very wild ride as TPTB seek to tame it and preserve the dollar’s twilight, but eventually their efforts will fail.
In 2007, they struggled to keep it under $700/oz. They failed.
In 2008, they struggled to keep it under $900/oz. They failed.
Now, they are trying to keep it under $1000/oz. And you will notice that no matter how hard gold gets hammered, it keeps settling back in the $950 range – despite the Plunge Protection Team’s efforts.
$1000 is just a matter of time. Even the hacks at Morgan Stanley see it at $1,200 in 2010, although I think they are being way too conservative:
“Gold, platinum and coal prices of US$1,000/oz, US$1,000/oz and US$75/t, respectively, in 2009, rising to US$1,200/oz, US$1,450/oz and US$90/t in 2010. We also assume that non-commodity export prices are down 10% in dollar terms. Export trade revenues are then converted at an average USD/ZAR rate of 10.30 in 2009 and 11.10 in 2010.”
Here’s what’s interesting: only 2 months ago Morgan was calling gold at $1000 in 2010:
“International financial services company Morgan Stanley confirmed that it now sees gold prices at $900 per ounce in 2009 on average (up from $750) and $1,000 per ounce in 2010 on average (up from $825).”
Notice the pattern? I personally haven’t invested much at all in platinum because I am still concerned that it’s too much of an industrial commodity. Unlike gold and silver, it has never been considered sound “money”.
My broker (who has been preparing for financial Armageddon since 2004 and was fired from Morgan for scaring his clients out of stocks and into gold) told me back in 2006 that it was going to $10K/oz, at a minimum. Back then, it was $550. So he’s even more bullish than I am. He’s also even more bullish on silver because the supply is much tighter. I personally feel you can’t go wrong with either of these. Look at it this way: even if gold only hovers around $1,000 and silver clings to $13, you will still be much better off than anyone holding paper. Metals are, at their core, a way to protect what you have worked hard to earn; they aren’t a way to get rich overnight. But you’re not going to the poorhouse with these babies in your hand 🙂
