So, they are predicting gold to dip to 1400-1450 and wont set a new record high until maybe 2014.

Ummm...so are they encouraging it as a buying opportunity? The record is 1900. So, they are expecting a $450-500 rise over 2-3 years?

If it goes from 1450 to 1900 in 3 years, that is a 9.43% annual rate of return. Not great, but better than a lot of investments these days. The article had an awful gloomy take on what looks like a pretty good position.

I invest in the tears of people who look for a big payday by investing in volatile commodities. Gonna be a good year.

DubyaHater: I invest in the tears of people who look for a big payday by investing in volatile commodities. Gonna be a good year.

I keep seeing all sorts of signs that we're on the path to recovery:

-Actual pimply teenagers working at fast food joints instead of retirees
-China's economy faltering (meaning that at least we're not the only ones hurting)
-Europe's economy faltering (meaning the same thing as above)
-People spending a lot on Christmas
-People ridiculing republican economic reform
-People seem happier than they did 1-2 years ago

It seems to me like gold pricing is 20% based on supply/demand and 80% based on fear. I predict gold is going to go way below $1400 in the near future.

Eddie Adams from Torrance: Sell Mortimer, Sell!

Lol

Author just cashed out of Gold, and wants everyone else to freak out and start a massive sell off to make his move seem more prescient and wise rather than just the crap shoot it is.

SnarfVader: Would've been better with the trifecta, "Gold prices to remain unchanged within 3 months."

Weird... the "Gold to rise above $2,500 in three months" article appears to have been un-greened, thus making this headline is a lot less fun.


Fubini: -China's economy faltering (meaning that at least we're not the only ones hurting)
-Europe's economy faltering (meaning the same thing as above)

I don't think these are good things. We've been net importers for a long time, and frankly we need Asia and Europe to get richer so that 1) they can buy our stuff and 2) their labor costs become less competitive. That would go a long way towards closing some of the global imbalances that have contributed to the recession.

Here's where some major banks expect gold to be at the end of 2012: Goldman $1,810/oz, Barclays $2,000/oz and UBS $2,050/oz

Arkanaut: Weird... the "Gold to rise above $2,500 in three months" article appears to have been un-greened, thus making this headline is a lot less fun.

If it ever was un-greened, then it has been un-un-greened. It's on the business tab, third thread below this one, after the Saab and AT&T/T-Mobile threads.

That is a bleak forecast?

I hope gold takes a dip to 600$ an ounce where it should be.

lucksi: That is a bleak forecast?

I hope gold takes a dip to 600$ an ounce where it should be.


I wouldn't hold your breath.

The mystery to me is why gold should decline if the Euro is in trouble.

So Europeans want to trade their highly troubled currency..... for another (even more) highly troubled currency, rather tha gold?

Because prognosticators that work for CNBC are always right! They only write for shiats and giggles, more like a hobby, as they are already rich from all their great investments.

Personal anecdotes and observations as they apply to gold are meaningless. The investment gold market is played mostly by large funds and central banks. All the gold purchased by individuals in the US for investment in 2011 is dwarfed in comparison to the gold purchased by the Chinese central bank in one average day. The only way to even vaguely have a handle on this market is to understand the forces that cause the large players to buy or sell or to learn how others outside the US view the precious metal.

China loves their gold. And they are big savers. The Pan Asian Gold Exchange in China is set to open in mid 2012 and will offer hundreds of millions of customers the opportunity to purchase gold and even take delivery, which is a lot more secure than the bogus GLD ETF. This also gives China a good base of operations to carry out their plan of replacing US treasuries as the reserve currency of choice and putting gold in its place. This may be a game changer.

I continue to believe the bull run in gold is not yet exhausted. It will eventually enter bubble territory, but I don't think we're there yet. If you buy or own gold as insurance against hyperinflation, a bubble and subsequent pop shouldn't matter to you all that much. Like most insurance policies, you'd prefer to not use it, but you have the satisfaction of knowing its there when you need it.