Posted on 07/31/2015 7:09:33 PM PDT by BenLurkin
Gold has been mauled this week as the commodity sank to a four-year low. But it may get a lot worse, according to economist Claude Erb, who said that his gold price forecast could see bullion tumble to $350 an ounce.
Erb deserves to have his opinion taken seriously, as he was among the only analysts predicting a long-term bear market for gold back in 2012. Rather than sit smugly by as gold lost $500.00 in value since his prediction, Erb has gone on the offensive this week and said it could get much, much worse.
He bases this prediction on two arguments.
The first is that gold is really worth about $825.00 per ounce, based on a formula he developed in a joint-publication in 2012 with Cambell Harvey, a Duke University finance professor.
The second is his prediction that when gold prices do begin to market-correct, downward momentum will plunge its value far lower; possibly as low as $350.00.
The possibility of a slingshot down past its real value is supported by historical data, because it happened in the mid-1970s and late 1990s. The difference is that with depressed oil markets, the Chinese stock crisis, and slumping growth in Europe, the stakes are higher than ever.
(Excerpt) Read more at profitconfidential.com ...
The price is deliberately being manipulated.
But also, despite that, it could get even worse. I believe that after the global economic collapse, which may occur as soon as this fall, the elites, bankers, and governments will even move to outlaw private gold ownership. The Luciferian system that is now coming together under the approaching rule of Antichrist cannot have people "off the reservation." All of humanity must be enslaved under the new Global Currency, Global Government, and Global Religion.
I remember buying Krugerands at about $400.00 back in the early ‘80’s.
Me, too. Not my most productive investment. But, patience is a virtue, and it’s insurance.
Gold may go to $300..but the premium to buy it will be $300 too!!...U cant print Gold!!
And they were beautiful and heavy. All money relies on faith.
If gold hits $350, try finding sellers
It seems this type of prognostication is being used to try to flush out sellers now, fast
Gold is a shiny metal.
“f gold hits $350, try finding sellers”
If gold goes to $350 it is because people are selling.
Maple Leafs are prettier, as are a host of the newer coins.
The miners are in desperate shape, not only in gold but also base metals. Anglo American just announced a layoff of 53,000. That’s both in gold and base metals.
Gold is a shiny, weak, non-corrosive metal.
And surely there won’t be an overage of buyers, eh?
I’m old enough now to not be sucked in by “pretty”. :{)
“If gold goes to $350 it is because people are selling.”
1 in 100 might be selling, but not everyone.
Brass is shinny lead not so much, but I have invested heavily in both. ;-)
Not as legal tender, but as a tool.
Amen brother!
If it drops below 400, it’s probably a buy. Perhaps at 500. It may drop a little more, but should bounce off the bottom pretty quickly. That being said, it will take quite a bit of inflation to get it back to where it is now - or some more market manipulation.
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