Kimber SIS Custom .45 ACP
MSRP $1265.00
Posted on 09/14/2010 10:46:24 AM PDT by SeekAndFind
(Reuters) - Gold could rally above $1,300 an ounce this year, setting successive all-time highs, as uncertainty about economic recovery and a sovereign debt crisis stoke investment interest, according to a closely watched industry report released Tuesday.
Investment demand in gold should benefit from the threat of inflation as central banks cut interest rates to the bone to battle double-dip recession and high unemployment, respected metals consultancy GFMS Ltd said in its Gold Survey 2010 Update.
"I think we could easily see gold spike comfortably above $1,300 before the year's out ... further gains in 2011 are far from out of the question," said Philip Klapwijk, GFMS Chairman.
"The United States has so far managed to side-step the sovereign debt crisis. But that could change in the future and that would undermine the dollar and boost gold," he said.
In April, Klapwijk told Reuters there was a good chance for gold to hit $1,300 this year with investor-led price gains. At that time, however, he said the metal was near the final stage of its 10-year bull market run as record investment buying could not be sustainable.
On Tuesday, spot gold hit an all-time high at $1,267.20 an ounce. Bullion has quintupled since 2000 when it was trading at about $250 an ounce. Year to date, it was up about 15 percent.
And December gold futures on the COMEX division of NYMEX scaled an all-time peak of $1,273 as of 11:02 EDT (1502 GMT) Tuesday. The prior record of $1,268.50 had been set June 21
(Excerpt) Read more at reuters.com ...
Considering gold is currently at 1270.70, a prediction of 1300 doesn’t impress me much.
It would break the nominal record, but in real terms still be way below.
RE: Considering gold is currently at 1270.70, a prediction of 1300 doesn’t impress me much.
Many commodity dealers I have spoken to are quoting a figure of $1600/oz as the real value of Gold today considering how much money we are printing.
I hear you, but Gold is the definition of ‘real terms’ - it is the store of value. Fiat currency changes relative to it.
The buying power of gold is roughly what it has been for the last few millenia: one ounce is the equivalent of so many loaves of bread or pints of beer, or some known fraction of the cost of a house.
Well what else could we expect? Bernanke and his rotten money policies of ZIRP is even killing the pension plans while trying to keep a zombie alive (the old speculative economy).
I have a good friend who is predicting $3,000 to $5,000. That may sound crazy, but he has been predicting that since gold was at $300.
Gold will $1500 at least. $1300 isn’t very impressive (as was pointed out).
Usually gold rises over uncertainty...but I'm wondering if this is why gold is rising this time.
Gold will rise to about $6500 an ounce in 2012, simply because the dollar will have lost 5/6 of its buying power.
FReepers, please buy commodities and precious metals like your future depends on it. Because it kind of does.
And of course guns, foodstuffs etc. America will not slip into Mad Max territory but it will briefly become like Argentina. Gold is your best defense against the hardships that lie ahead - and guns are your best defense against everything else.
RE: Usually gold rises over uncertainty...but I’m wondering if this is why gold is rising this time.
Yes, uncertainty and/or expectations of high inflation.
But then i was thinking, what if the Obama agenda were to be stopped on its tracks ? Would there still be this uncertainty ? What would that do to the price of gold?
That’s why, tempting as it is to me, I don’t put all my investments in gold. I use it as a hedge. In fact, I only have 8% of my money in it at this time.
For years, a rule of thumb was that an ounce of gold would buy a good handgun or a good man’s suit.
Or about 1/60th of a congressman.
I am at 25% - mainly because I just cannot see how the debt is going to be financed.
A strongly conservative (not RINO) result in the midterms will give people confidence in the dollar again - but the debt stresses will still have to play out.
The world is in debt saturation, so I cannot see where the money is coming from to pay off the Fed’s debts - unless Obama prints it or steals it from pensions.
ML/NJ
This is the second time gold has broken thru the $1250 ceiling.
You never know ahead of time, but $1250 may be the new floor price for gold.
In the same fashion as $1000 acted as a ceiling price for gold for a long time and now it is the floor price for gold.
So long as the world’s economies print fiat/worthless paper money, gold will only increase in value.
Kimber SIS Custom .45 ACP
MSRP $1265.00
Another day like today -- even spread out over a week, and we got two of 'em left in the moth -- and we'll end up having to give a tip of the hat to Cramer and Goldman Sachs -- they were both talking about the possibility of gold reaching $1300 gold in September.
And let's not forget about silver, which has been doing far better in the past two weeks or so: "History Says Silver Is Cheap" here http://www.freerepublic.com/focus/f-news/2588992/posts
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Alternate title:
Dollar’s value could drop below 1/1,300 of an ounce of gold in 2010 (record low)
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