Gold to Fall Below $1,000 By End of Year: Economist

[DMac]

:ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL: :ROFL:

Sorry I couldn't resist!

Gold to Fall Below $1,000 By End of Year: Economist (http://www.cnbc.com/id/37128062)

Strength in the US dollar and stability from the European bailout will take the steam out of gold's recent run and send prices to below $1,000 by year's end, one economics firm says.

Gold [GCM0 1233.8 -9.2999 (-0.75%) ] broke its record dollar-highs this week but should even be higher considering all of the global economic uncertainty and market turbulence, said Julian Jessop, chief international economist at London-based Capital Economics.

"Gold's recent performance has been impressive and stronger than we had anticipated, but it should perhaps have even been a little better," Jessop wrote in a note to clients. "Widespread fears over public debt, the integrity of policy-making and the health of the financial system should be ideal for an asset whose value is not dependent on the creditworthiness of any government or bank."

But the metal's price ratio against oil [CLM0 74.07 -1.58 (-2.09%) ] is actually below the historical average of 17, argues Jessop, who believes the trend shows resistance to gold moving higher.

"The EU rescue package has averted an imminent financial meltdown in the euro-zone, while at the same time the required fiscal tightening will keep inflation subdued," Jessop said. "With global growth and commodity prices also set to fall as the policy stimulus fades in other key economies, including China, gold should lose the support it has gained as an inflation hedge."


Jessop concedes that a short-term move to $1,400 an ounce is possible but will not last. And he offers a contrarian view, at least in the near term, relative to gold's trends.

Meanwhile, gold prices steadied Thursday around $1,235 an ounce, but analysts expect it to extend gains in the coming days as investors look for safety amid global currency weakness and general economic uncertainty.

"I think we could easily see a new record high before the weekend," analyst Walter De Wet at Standard Bank told Reuters, referring to the spot gold price. "But also ...at these levels smaller than usual volumes could push prices higher," he added.


__________________________________________________ __



I find it hilarious that in an article entitled: Gold to Fall Below $1,000 By End of Year, the economist in question states short term we can see gold rise to $1400 an ounce, yet strength in the USD and stability in the Eurozone will see to it that the price falls below 1k. Also, because oil and gold are not trading at an optimal level, therefore gold is far overpriced.

Well.

1) IMO, the gold:oil ratio was a good way to track buying and selling gold. I think gold and oil have decoupled.

2) Over the next 6 months we are going to see a rise of 200 in the price of gold, then a crash greater than 400? No way Kemo Sabe.

3) "Strength in the US dollar and stability from the European bailout" - I think that economist is smoking crack.

These people get paid for to write this bunk!!!????

[ximmy]

Let's balance this out a little... ;D

Gold Could Explode To $3,000 As Confidence In Currencies Collapses
Financial analyst David Rosenberg says gold could explode to $3,000 an ounce as European investors dump the ailing euro in exchange for the precious metal while JP Morgan states that bullion could face unlimited demand as panic buying ensues on the back of crumbling confidence in fiat currencies.
Rosenberg, chief economist at Gluskin Sheff, says the breakdown of the euro is extremely bullish for gold, especially in light of speculation that the ECB could be planning more quantitative easing (printing money).
“The case for gold heading to $3,000 an ounce is getting stronger by the day. The Euro has already broken below 1.30 to the U.S. dollar and there is plenty of room for additional decline going forward. It’s only at a one-year low — wait until it moves to a decade low,” writes Rosenberg.
Rosenberg points out that the problems in Greece, Spain and Portugal have little to do with liquidity and everything to do with “a crisis in confidence”.

http://www.prisonplanet.com/gold-could-explode-to-3000-as-confidence-in-currencies-collapses.html

[Saul Mine]

Well, those things do happen from time to time. And even though we think we are heading toward a new peak at the moment, there is also the so called summer slump still ahead. Don't forget what happened in 2008: silver lost about 40% and gold lost about 20% and nobody ever figured out why.

[gunDriller]

These people get paid for to write this bunk!!!????

yeah, but they get paid in US dollars. 8)

European coin dealers are temporarily closing their doors because they can't get stock. They're selling out - there are widespread shortage conditions for most gold products.

i would say the markets speak louder than an economist who may well have been instructed to say bad things about gold. if that economist is sincere, he will keep his money in bank accounts and stocks and bonds - not precious metals. so when the counterparty risk hits the fan, that economist is going to have some high-blood-pressure moments.

since the CFTC hearings on March 25 (and other revelations, e.g. Andrew Maguire) the markets have been on a tear. from $16.75 to $19.50 for silver, from $1090 to $1240 for gold. in 7 weeks.

not only that - when the stock market fell last week, gold rose 1.5% to 2%. not many asset classes rise when the stock market falls 9%.

if you listen to the webcasts at King World & Financial Sense etc. one message comes through loud and clear - BUY GOLD - don't overpay but buy/accumulate gold.

[skidmark]

The Economist is James Turk's Infallible Indicator


Gold's Infallible Indicator - Six Months Later

Nov 7, 2007 - Exactly six months ago I wrote about an indicator that has predicted with 100% accuracy when the price of gold was about to rise. The entire article can be read here: 'Gold's Infallible Indicator'.

Over the years, this indicator has been one of my favorites. It has been so good that I call it "gold's infallible indicator". True to form, this indicator is still scoring 100%.

The indicator is very simple. It is based on articles about gold in The Economist magazine. As I wrote six months ago: "The Economist rarely writes about gold, but when it does, start buying. It has an uncanny knack for publishing unswervingly bearish articles on gold just before the price heads higher."

The last article about gold by The Economist appeared on April 8th, when gold was trading at $674.20. As of yesterday's close, gold has risen 21.7% so far - I say "so far" for a reason. Gold's uptrend remains intact, and no one knows when this uptrend will end. So further gains in gold are entirely possible. Here is this indicator's record.

I happen to believe that The Economist publishes some high quality material. So why is it always wrong about gold? As I note in my article six months ago: "While The Economist pretends to offer serious analysis of gold, in reality it doesn't. It has another objective - anti-gold propaganda." To be blunt, The Economist is a tool of the gold cartel, the activities of which are well documented by the Gold-Anti Trust Action Committee. GATA's research is available for free at www.GATA.org.

The gold cartel has one primary objective - to make the dollar look worthy of being the world's reserve currency. We all of course know that the dollar is not worthy of that esteemed title, but that doesn't stop the gold cartel.

One way they pursue their objective is to intervene in the gold market to keep its price low. Gold and the dollar are major competitors; they compete for holders. A low gold price makes people believe that all is well with the dollar. But the gold cartel also uses other means to pursue its nefarious goal, one of which is disinformation.

The gold cartel knows as well as you and I that not only is gold money, it is the most powerful money of all because its value is not based upon someone's promise. Gold has no counter-party risk. So it is only with reluctance that the gold cartel dishoards metal from central bank vaults. They know that once that gold is sold into the market, they are unlikely to ever get it back at current prices. It is therefore less costly for them to just disparage gold. By doing so, they hope to keep you from buying it, thereby lessening its demand.

So from time to time, the gold cartel enlists anti-gold publications that favor fractional reserve banking, fiat national currency, and managed money through the central banking elite. The Economist is all of those, with the result that it sits at the top of the gold cartel's list of friendly rags. When the gold cartel is losing control, they invariably turn to The Economist, which then dutifully spins out some disparaging piece on gold, but to no avail. Eventually the market always overwhelms government price controls. It is an unalterable reality that price controls always fail eventually, even government price controls on gold.

So my conclusion is the same as the one I wrote about six months ago. "When reading about gold in The Economist, do it with a jaundiced eye, understanding that its foremost objective is to disparage gold. More importantly, when this infallible indicator flashes a buy signal, start buying."

http://www.fgmr.com/golds-inflallible-indicator-six-months-later.html

[gunDriller]

Gold to Fall Below $1,000 By End of Year: Economist (http://www.cnbc.com/id/37128062)

Strength in the US dollar and stability from the European bailout will take the steam out of gold's recent run and send prices to below $1,000 by year's end, one economics firm says.
...
These people get paid for to write this bunk!!!????

This reminds me of CERA, an oil research company that paints rosy pictures of 130 million barrel per day (MBpD) production, when real production has been plateaued at 74-75 MBpD since 2005. Add another 10 MBpD out of "synthetics", oil from sources other than crude.

So CERA, if you PAY them $2500 or so, will send you a report that paints a rosy picture of future oil production.

There's a lot of Americans that get paid to use their degrees to add credence to lies sold by American corp's. as part of their "information products" sales.