Posted on 01/18/2013 11:58:21 AM PST by blam
GOLDMAN SACHS: BUY GOLD
Matthew Boesler
Jan. 18, 2013, 11:53 AM
On Wednesday, Goldman Sachs upped the ante on its call that 2013 will mark the end of a long-running bull market in gold by introducing a new forecast: the bank's commodity strategists see the shiny yellow metal falling to $1200 per ounce by 2018.
However, despite having a bearish 5-year forecast for gold prices, Goldman's 3-month forecast is actually quite bullish. In fact, strategists Damien Courvalin and Alec Phillips write in a note to clients today that they expect gold to reach $1825 per ounce over the next few months – up from current prices around $1690 – as the debt ceiling debate drags on in the United States.
"As a result, with gold prices up only modestly over the past week, we see current prices as being a good entry point to re-establish fresh longs in the gold market before the run up to the debt ceiling debate," Courvalin and Phillips write.
The strategists use a number of charts to illustrate their thesis. The first shows how gold prices ran up in 2011, when Congress faced the same debate about raising the debt ceiling:
However, given a number of global macroeconomic factors adding to uncertainty at the time, Courvalin and Phillips concede that the debt ceiling debate itself did not contribute all $150 to the run-up in prices at the time.
Still, the two point out that there have been six debt ceiling debates in recent memory – and during three of those debates, gold rose 10 percent:
The Goldman strategists write:
There were six instances between 1996 and 2007 when the debt limit was reached and the Treasury resorted to using “extraordinary measures”.
(snip)
(Excerpt) Read more at businessinsider.com ...
Yesterday's post:
I’ve been investing in copper, lead and brass instead of gold.
Something’s terribly wrong if Goldman-Sachs is getting into gold.
Obama, our first Muslim loving terrorist President, is the reason. Even Goldman-Sachs is realizing who the traitor really is. Benghazi made it obvious who the Islamic traitor is but until the Press tells the truth (and that isn't going to happen any time soon), most Americans will continue to be sitting targets.
No, that's not what Goldman thinks at all actually. In fact they think the US economy will recover in 2013. They are only bullish on gold for the next 3 months, in the long term they are bearish on gold and think it will drop to $1200 an ounce.
Blam, Do you read what you post?
The new precious metals.
If GS is saying “Buy gold”, it means they are expecting the price to collapse and they’re trying to get the the suckers to bid the price up a few more bucks before Goldman unloads what they’ve got.
Goldman thinks the economy will recover in 2013......What are there projections on the Easter Bunny?
As soon as word gets out that the Federal Reserve bank can’t produce Germany’s gold that they’ve requested to repatriate I’d think the price would skyrocket as the FRB frantically tries to replace Germany’s missing gold before others come calling for their metals. Apparently the FRB said “sure we’ve got your gold right here just give us SEVEN YEARS to get that right to you. You can have a seat in the lobby if you’d like.”
If you have a complaint, let's hear it.
I guess I won't sue VCU after all.
5.56mm
Goldbug ping.
BOOKMARK
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