No wishful thinking here! As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons - sovereign debt defaults, bankruptcies of “too big to fail” banks and other financial entities, currency inflation and devaluations - which will all contribute to rampant price inflation.
Not surprisingly, I have company in that view:
Money manager, Peter Schiff, told Business Week recently that, "Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years” and highly respected economist David Rosenberg is of the opinion that "There is no doubt that gold can easily double from here."
Money manager, Peter Schiff, told Business Week recently that, "Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years” and highly respected economist David Rosenberg is of the opinion that "There is no doubt that gold can easily double from here."
THE CAUSES
1. History is No Guide
Gold has only been trading freely since President Nixon's 1971 decision to deny gold to the French and others attempting to repatriate their paper dollars for the metal. As such, there has been a scant forty years of gold production and trading since it was detached from supporting paper money. This period has also been marked by substantially higher monetary and price inflation as well as currency devaluation.
Gold has only been trading freely since President Nixon's 1971 decision to deny gold to the French and others attempting to repatriate their paper dollars for the metal. As such, there has been a scant forty years of gold production and trading since it was detached from supporting paper money. This period has also been marked by substantially higher monetary and price inflation as well as currency devaluation.
2. Market Manipulation
The Commodity Futures Trading Commission (CFTC) recently held a major hearing which blew the doors off bullion metals futures trading markets in terms of what was revealed publically. I predict this public hearing will be viewed in the period ahead as the precious metals price liberation event of the decade.
The Commodity Futures Trading Commission (CFTC) recently held a major hearing which blew the doors off bullion metals futures trading markets in terms of what was revealed publically. I predict this public hearing will be viewed in the period ahead as the precious metals price liberation event of the decade.
It is commonly known that JP Morgan Chase in the major player in commodities futures markets trading. Not only do they take massive naked short positions (betting that prices will fall), they do it with large substantial leverage. What isn't as well known though is that Chase acts as the agent for the Federal Reserve Board and other central banks in 'managing' the markets on their behalf. Central banks want 'orderly' precious metals markets and prices and currencies which don't gyrate wildly. Only then can they achieve stealth inflation in their monetary policy which is so beneficial in servicing debt. It also makes for good (meaning effective) politics.
3. Insufficient Physical Inventories
While it is normal for traders to roll their expiring contracts over into new paper trades, some traders accept cash in settlement rather than the metal. To the amazement of everyone the recent hearing of the CFTC - specifically Jeff Christensen’s comments - inadvertently confirmed that there is little bullion in storage at the London Metals Exchange or New York's COMEX to back the metals trading. He justified this fact by noting that only one ounce of one hundred traded is paid out in physical metal. This revelation confirmed a much worse reality than even critics, such as the Gold Anti-Trust Action Committee (GATA), had expected. It seems that the Asian and Mid East buyers and owners of bullion have been removing gold from their dealers’ vaults and are taking it "home" thus leaving much less than previously thought in the London, New York and Toronto vaults.
In addition to what looks like a production peak in the gold mining industry (production has fallen in 5 of the last 8 years), central banks have for the first time recently become net purchasers (having bought more gold last year – 425 tons – than at any time since 1964).While it is normal for traders to roll their expiring contracts over into new paper trades, some traders accept cash in settlement rather than the metal. To the amazement of everyone the recent hearing of the CFTC - specifically Jeff Christensen’s comments - inadvertently confirmed that there is little bullion in storage at the London Metals Exchange or New York's COMEX to back the metals trading. He justified this fact by noting that only one ounce of one hundred traded is paid out in physical metal. This revelation confirmed a much worse reality than even critics, such as the Gold Anti-Trust Action Committee (GATA), had expected. It seems that the Asian and Mid East buyers and owners of bullion have been removing gold from their dealers’ vaults and are taking it "home" thus leaving much less than previously thought in the London, New York and Toronto vaults.
More Here..
Yep, Gold's officially a bubble. It's being shilled left and right.
ReplyDeleteThat's not cool dude. I've been promoting your site. I'm a 'friend'.
ReplyDelete5:04 they've been saying Golds a bubble since $600. When its $2000 and up the shills will be saying the same thing..
ReplyDeleteWhat good is gold you cant eat it is does nothing but look pretty.Whats the big hype over a rock.
ReplyDelete5 to 10 years so why all the concern now?
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ReplyDeleteNot another gold pumping story? really?
EA, you need some fresh gloom and doom stuff, that we can really sink our teeth into:-)
Hmmm, gold at $10k just means a loaf of bread is $100 and a gallon of milk is $200. Don't get loony toons and think that gold will be $10k and merchants are just going to keep prices as they are now, but under much starker conditions.
ReplyDeleteThere will be a very short time period where prices haven't caught up to the reality, and $10k oz gold will bring an owner advantages. But that will be short lived.
tO 504. Hey when your buddy jesus was walking around I seem to remember that there was gold and it was very valuable all those thousands of years ago, but fill me in, was there any paper currency or the us dollar, let me know, Numbnuts. I'll take my chances with thousands of years money, versus the overprinted toilet paper you love so much. 739 the only rock you have is in your head.
ReplyDelete927 stiff credit cards I did and still do, I will pay nothing on them, and they will do nothing as I have everything I need by using those cards.
ReplyDeleteAfter getting badly sideswipped by the U.S . Ponzi economy export of dud AAA subprime bonds, unpayable derivitive bet insurance “securities” to finance US debts , Etc. and with the GFC bought on by the shut down of world money markets ,even after multi –trillion dollar bailouts and
ReplyDeletecoups for socialisng the losses on both sides of the atlantic ,all is not well. Here is the new government of the U.K”s. Official view on the UK economy. Back on their bare Assbones!
“The (U.K.) economy, more damaged by the banking crisis than previously admitted, will grow more weakly and may never fully recover, the new Office for Budget Responsibility (OBR) said yesterday.”
But America is Different ! Americans are not pessimistic English people.Faith in American exeptionalism means that “recovery” is well under way in the US . That already started with last years ‘green Shoots” evidence.
And there is now an American “Can Do” President as good as Bush and Regan ever were. As He proved his Greatness once again
by his “fireside” syle speech on the pesky little oil crisis .
America will stand tall covered in oil or not! It takes more than a squirt oil in the eye and heart of america by ‘perfidious Albions” sabotage in revenge for the War of ndependence and for getting conned by sharp Yankee Bansters recently, to stop a vast american economic recovery under a President using the power of speech for rallying an” army” of “can do” american Patriots to clean up the oil on behalf of an incompetant BP!
Faith in America, the dollar and the American Sprit and way, can always triumph over mere economic and environmental reality.
Dollars can be printed and glorius Bubbles created at whim by the Fed! Greenspan proved it and Bernanke follows the same policies.So, everything is A O.K.and on track as the U.S.is still fundementaly sound .
This U.K. doom report, perhaps means you should Sell BP and all British shares and buy American shares , while they are still so unreasonably undervalued ,because of doomsay oil problems and stupid rumours . The President is on trhe job, from Iraq to Pakistan even now in the GOA. At last ! Amerikan greatness built on cheap oil is in the bag!
All you need to do to get rich , in the american dream tradition , is put your money where your faith and heart is,in paper profit guaranteed America. A free flag lapel button should be given to every patriotic person who sells their gold and silver in order to purchase American stocks and bonds.And undervalued housing for your fellow Americans.
Forget your narrow selfishness and narrow survivalism .Patriotic Faith based solutions are the thing, not petty silver an gold hoards.
Ask not what america can do for you,but what you can do for America!
Stand up for America in its hour of need!
Sell your silver and Gold in order to buy up shares and government Bonds to bring back the boom times of fictional values and put America back to work.Buy American Made if you can find anything in Wall*Mart!
Congress gave BP's guy a standing ovation for his fake efforts. A banker congress applauding a fellow corporate stooge.
ReplyDeleteI think the people with functioning brains have got the message: buy silver and gold now or get wiped out. Period.
ReplyDeleteIt isn't about how high Gold will go it is about how low everything else will go.