Gold Going through $2000???

[WinkHPD]

To avoid possibly violating someone''s copyright issues I will post the link to this interesting article by Ambrose Evans-Pritchard about comments made by Tom Fitzpatrick, Citibank''s chief technical strategist.


http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3526645/Citigroup-says-gold-could-rise-above-2000-next-year-as-world-unravels.html

If true, it will make my statement a few weeks ago about platinum being on sale quite prophetic, as platinum will surely rise along with gold.

Wink

 

[strmrdr]

I believe anything that comes from someone at Citigroup as much as I believe the guy on the street corner yesterday yelling that the world was going to end today at noon.
Which is in 27 min. from now.

 

[WinkHPD]

Date: 12/4/2008 12:32:50 PM
Author: strmrdr
I believe anything that comes from someone at Citigroup as much as I believe the guy on the street corner yesterday yelling that the world was going to end today at noon.
Which is in 27 min. from now.

LOL! I certainly hope the guy on the street corner is wrong! It would ruin my day if he is not.

As for the article, I think there are some interesting points there. I do not think gold will hit $2,000 by the end of next year, but I do believe it will be significantly higher than it is now.

Time will tell!

Wink

 

[Winks_Elf]

I personally thought the most "of interest" part of the whole article was:

Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. "If true, this is a very material change," he said.

That''s a pretty significant difference...but where are these "reports" coming from? How reliable are the sources? Are they going to a gold standard, or is the whole thing bunk?

 

[strmrdr]

And Gas is going to hit $1
http://www.patriotledger.com/business/x1881115149/Gulf-Oil-CEO-says-lower-gas-prices-ahead

Lets see which happens first.

 

[strmrdr]

Date: 12/4/2008 12:49:46 PM
Author: Winks_Elf
I personally thought the most ''of interest'' part of the whole article was:

Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. ''If true, this is a very material change,'' he said.

That''s a pretty significant difference...but where are these ''reports'' coming from? How reliable are the sources? Are they going to a gold standard, or is the whole thing bunk?

My thoughts are like the US government they are going to be to busy throwing money to big business to afford it while trying to prevent a revolution at home.
China has artificially maintained their currency level to aid exports by playing in the reserve market.
To change course will only make the economic situation there worse.
It would be nice if they did because it would make domestic production here more competitive.

 

[strmrdr]

2 min until the end of the world! (according to the guy on the street)

 

[strmrdr]

wow the world didnt ..... bbbbbbbzzzzzzzztttttttttttt pop ..... NO CARRIER

 

[tradergirl]

I''ve bought some physical gold but I''m more interested in knife catching in the oil market.

 

[strmrdr]

Date: 12/4/2008 12:59:53 PM
Author: strmrdr
wow the world didnt ..... bbbbbbbzzzzzzzztttttttttttt pop ..... NO CARRIER

What is funny is that at 12:02 my internet connection went down for about 3 min ROFL maybe the guy was right!

 

[strmrdr]

Date: 12/4/2008 1:25:49 PM
Author: tradergirl
I''ve bought some physical gold but I''m more interested in knife catching in the oil market.

general trend is down for now and likely to eventually level at 70ish in a year or so.
All the talk of alternative energy scared the oil producing countries so they are going to try and keep the costs of the alternatives at a disadvantage compared to the price of oil based technology.
70ish is below where US production becomes feasible in a lot of areas and it puts tremendous pricing pressure on alternatives.

 

[JoeNewbie11]

Gold should stay where it currently is during this global deflationary period. Once the global recession is over and jobs are created/factories are running again, significant inflation (especially USD) should occur. The market will likely drive the price of gold much higher once the signs of the recession are waning, which will preceed this inflationary period.

 

[softly softly]

Don't forget to factor in supply and demand. Australia is one of the world's biggest gold producers and we have only had one significant gold discovery come on line in the last five years. Given current conditions this is unlikely to change anytime soon as greenfields exploration is always the first casualty of a mining downturn and nobody can raise the capital to develop new projects at the moment.

 

[WinkHPD]

Date: 12/4/2008 1:28:34 PM
Author: strmrdr

Date: 12/4/2008 12:59:53 PM
Author: strmrdr
wow the world didnt ..... bbbbbbbzzzzzzzztttttttttttt pop ..... NO CARRIER

What is funny is that at 12:02 my internet connection went down for about 3 min ROFL maybe the guy was right!

Nah, we are still here, whew!

I think you are right that at least for the near term prices are down, but I do expect them to take a hike not too long after the start of the Ney Year.

Personally I hope you are righter than me, I like having the prices seem normal again.

Wink