MNeagle
30th December 2010, 06:17 PM
too much formatting to bring over, so go to the link please.
Submitted by George Washington on 12/30/2010 19:32 -0500
→ Washington’s Blog
It is easy to argue that gold is in a bubble.
But as I pointed out last month:
Deutsche Bank's head commodities researcher [Michael Lewis] wrote in September:
Gold prices would need to surpass USD 1,455/oz to be considered extreme in real terms and hit USD 2,000/oz to represent a bubble.
Lewis lists as factors driving gold higher:
* A collapse in the US dollar
* Low or negative real interest rates
* Skitish global equity markets
* Coordinated [as opposed to disorderly] central bank gold sales
* Producer dehedging
* New gold investment vehicles
* Falling mine production and rising costs
* Terrorism & rising geopolitical risk
Bloomberg notes:
Myles Zyblock, chief institutional strategist at RBC Capital Markets, said last month gold may soar to $3,800 within three years as it follows the pattern of previous “investment manias.”
zero hedge (http://www.zerohedge.com/article/gold-not-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)
Submitted by George Washington on 12/30/2010 19:32 -0500
→ Washington’s Blog
It is easy to argue that gold is in a bubble.
But as I pointed out last month:
Deutsche Bank's head commodities researcher [Michael Lewis] wrote in September:
Gold prices would need to surpass USD 1,455/oz to be considered extreme in real terms and hit USD 2,000/oz to represent a bubble.
Lewis lists as factors driving gold higher:
* A collapse in the US dollar
* Low or negative real interest rates
* Skitish global equity markets
* Coordinated [as opposed to disorderly] central bank gold sales
* Producer dehedging
* New gold investment vehicles
* Falling mine production and rising costs
* Terrorism & rising geopolitical risk
Bloomberg notes:
Myles Zyblock, chief institutional strategist at RBC Capital Markets, said last month gold may soar to $3,800 within three years as it follows the pattern of previous “investment manias.”
zero hedge (http://www.zerohedge.com/article/gold-not-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)