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Goldman Hikes Its 12 Month Gold Price Target From $1,735 To $1,830
Zero Hedge ^ | 8/711 | Tyler Durden

Posted on 08/07/2011 8:59:35 PM PDT by Nachum

The first of many gold price upgrades is here, as Goldman's David Greely finally catches on to what has been all too obvious to anyone with a frontal lobe: "Gold prices hit a new record high last week, closing at $1,663/toz on August 3. Despite this rally, the rise in gold prices has continued to lag the plunge in US real interest rates, with 10-year TIPS yields trading below 30 bp. With our US economics team lowering their outlook for US economic growth, implying US real rates will remain lower for longer, and with sovereign debt issues in both the United States and Europe intensifying, we are raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, respectively." Next up: everyone else.

Note summary:

Gold prices rise to record high as 10-year US TIPS yields plunge to a record low

Gold prices have rallied strongly since the beginning of July, rising 12.2% to a record (nominal) high close of $1,663/toz on August 3. While the rise in gold prices has been sharp, it continues to trail the fall in US real interest rates. In particular, 10-year US TIPS yields plunged from 77 bp to a mere 24 bp over the same period, according to the US Federal Reserve. Consequently, despite this rally to yet another new record (nominal) high, we believe that gold prices will continue to rise as:

(Excerpt) Read more at zerohedge.com ...


TOPICS: News/Current Events
KEYWORDS: bailedout; gold; goldman; hikes; target; tarp
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1 posted on 08/07/2011 8:59:38 PM PDT by Nachum
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To: Nachum

Well they have already hit their 3 month target and might hit their 6 month target soon. Gold at 1699 right now.


2 posted on 08/07/2011 9:05:42 PM PDT by jpsb
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To: Nachum

Sigh. That’s a confidence boost for the dollar. /s


3 posted on 08/07/2011 9:06:46 PM PDT by Palter (Celebrate diversity .22, .223, .25, 9mm, .32 .357, 10mm, .44, .45, .500)
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To: Nachum

QE3


4 posted on 08/07/2011 9:08:40 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: Palter
With the FOREX going nuts, China's downgrade on us and being downgraded for their toxic assets, and the EU debacle, investors are hedging their bets on gold. Not a surprise.

I'm betting it will hit 2K before year end. I'll sell all my single earrings, unwanted jewelry, and make a bundle.

Wish I could have invested in it when it was $1,300 an ounce, but every appliance decided to keel over this year, including 10K for the HVAC, plus a new roof and fence. Ugh!

5 posted on 08/07/2011 9:12:22 PM PDT by TheWriterTX (Buy Ammo Often,)
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To: Nachum

Is that before or after the bubble bursts? /s =.=


6 posted on 08/07/2011 9:12:48 PM PDT by cranked
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To: mlocher
QE3

With what? We are selling treasuries with no return now. All we are selling is the notion that bonds are safe. Well, we just got downgraded brother.

Stand by

7 posted on 08/07/2011 9:13:43 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mlocher

Did you catch how England is blaming us for their rising commodity prices because of QE? Of course, no talk of their own rounds of QE. The Bank of England’s posting of record profits was met with 2-parts scorn and 1-part laughter, since it was all “electronic” QE money.


8 posted on 08/07/2011 9:14:03 PM PDT by TheWriterTX (Buy Ammo Often,)
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To: Palter
Sigh. That’s a confidence boost for the dollar. /s

The dollar is toilet paper just like the other paper currencies. Gold will punish them all - it's quoted in 4 digits now against ALL currencies. Gold isn't changing, the fiat currencies are.
9 posted on 08/07/2011 9:14:14 PM PDT by dollarbull (why are paperbugs so bad at history?)
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To: mylife

Love your tag line, BTW.


10 posted on 08/07/2011 9:15:06 PM PDT by TheWriterTX (Buy Ammo Often,)
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To: TheWriterTX
Yeah, my poor mans gold[Silver] has really done well for me. It doesn't have the draw from India and China, but it's cheaper.


11 posted on 08/07/2011 9:17:48 PM PDT by Palter (Celebrate diversity .22, .223, .25, 9mm, .32 .357, 10mm, .44, .45, .500)
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To: TheWriterTX
I like yours as well, and I am kicking myself for not buying some of this

Ammo

This weekend while the prices are still decent.

12 posted on 08/07/2011 9:20:32 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: Palter

I have a bet that it will hit $80

I could be full of it, but that’s the wager.

There are a lot of big boys raising the margins


13 posted on 08/07/2011 9:23:37 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mylife

Wish I had bought some more, too. Going to be interesting to see how much it goes up tomorrow. Gander Mountain had .22 LR for $3.99 for 50 rounds today.


14 posted on 08/07/2011 9:25:13 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: mylife

I knew I should have gone shopping today! Looks like things will be ugly tomorrow.


15 posted on 08/07/2011 9:25:13 PM PDT by jpsb
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To: Nachum

I went to my local coin dealer yesterday and he told me people were lined up outside his door when he got there in the morning.

He had a lot of stuff when I went there last week but he sold out and all he had left by the time I got there was a old scratched up Ag Eagle.

Tomorrow is going to be fun


16 posted on 08/07/2011 9:26:25 PM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: Palter
Look what the nikkei just did!


17 posted on 08/07/2011 9:27:30 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: Nachum

Spot gold just hit 1700 a few minutes ago.


18 posted on 08/07/2011 9:27:52 PM PDT by Cicero (Marcus Tullius.)
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To: jpsb

I agree


19 posted on 08/07/2011 9:28:38 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: TheWriterTX

America is exporting its inflation.


20 posted on 08/07/2011 9:29:04 PM PDT by Orange1998
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To: TheWriterTX
Did you catch how England is blaming us for their rising commodity prices because of QE?

Oh yeah! EU and UK are in big time trouble -- far worse than US. Personally, I believe the recent sell off in stocks is because of the dire situation in Europe. Besides Greece, Portugal and Ireland, Spain and Italy are in dire straights, with Italy's bonds on the verge of collapse. Add that France and Germany are showing signs of not wanting to bail out their "friends", and there is a disaster looking. US debt, on the other hand, is still paying interest rates Lower than they were a month ago, and rates on the 30 yr treasury has only ticked up 0.2% since friday.

The current state of panic has more to do with EU and UK than anything else.

21 posted on 08/07/2011 9:30:31 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: Terry Mross

This is very very bad that we are even discussing this stuff.

Gold wont mean shit if you cant keep it.


22 posted on 08/07/2011 9:30:41 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: Cicero

1701.


23 posted on 08/07/2011 9:32:28 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: mylife

It’s going to get ugly. God, I pray I’m wrong. My prayers are now that God do with this country as He will and lead and guide me in the right direction.

I told my wife earlier that 10% of me wants to pack my freeze dried food, my gun and ammo and head for the hills.


24 posted on 08/07/2011 9:32:34 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: mylife
With what?

Same thing as QE2. Cyber dollars.

With the situation in the EU, there is a risk of a credit shut down (not to mention the financial reform bill). Bernanke and banking ministers see everything as a monetary policy problem, hence they will erroneously try to solve them with a a monetary fix.

25 posted on 08/07/2011 9:33:55 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: mlocher

All I know is that I am out of the market.

I PRAY that my cash will be worth something so that I can buy the bargains.

In the meantime I accrue stuff to trade


26 posted on 08/07/2011 9:34:05 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mylife
Gold wont mean shit if you cant keep it.

Valid point given this "spread the wealth" mentality.

27 posted on 08/07/2011 9:35:10 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: Nachum

THIS concerns me, because when Goldman releases a “target” they inevitably sell against it. I do not think even the mighty Goldman can suck the juice out of gold this tie, though.


28 posted on 08/07/2011 9:36:25 PM PDT by Attention Surplus Disorder (Both sides need to put aside the partisan bickering, & work out how much free stuff I get)
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To: Terry Mross

Only 10%?

I fear the worst. I have no faith in these jackals


29 posted on 08/07/2011 9:36:25 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: Nachum

Gold sits at $1699 and change at this moment...


30 posted on 08/07/2011 9:36:27 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: Nachum

THIS concerns me, because when Goldman releases a “target” they inevitably sell against it. I do not think even the mighty Goldman can suck the juice out of gold this time, though.


31 posted on 08/07/2011 9:36:58 PM PDT by Attention Surplus Disorder (Both sides need to put aside the partisan bickering, & work out how much free stuff I get)
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To: Nachum

Oops!

$ 1700.35


32 posted on 08/07/2011 9:37:27 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: Cicero

Up over 50 bucks in only a few hours, damn, dow futures down 280+. Asian markets all down 3 or 4 percent.


33 posted on 08/07/2011 9:38:34 PM PDT by jpsb
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To: mlocher

I’m a mental midget when it comes to finance, but this whole thing feels very very bad.


34 posted on 08/07/2011 9:39:18 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mylife

Well, it’s up to at least 20% now. But to do so I’d have to walk away from a lot. Then again, there may not be much left by tomorrow afternoon and travel may be prohibited.


35 posted on 08/07/2011 9:39:37 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: Nachum

There is a niche here to make money. Keep your eye on key indicators such as Oil and Pork.


36 posted on 08/07/2011 9:40:29 PM PDT by eyedigress ((Old storm chaser from the west)?)
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Tomorrows headline:

World markets collapse due to Tea Party!

37 posted on 08/07/2011 9:40:48 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mylife

By the way, I’ve got 500 rounds and I fired expert at 200 yards in the Seabees. In fact, with this little .22 rifle I have I can “bounce” a tin can.


38 posted on 08/07/2011 9:40:58 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: mylife
I PRAY that my cash will be worth something so that I can buy the bargains.

You should be safe for a while. Oil is dropping like a rock right now and that should keep inflation in check for a few months. If there is a credit crunch, prices and inflation will acutally fall.

39 posted on 08/07/2011 9:41:19 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: mlocher

The UK and the rest of Europe didn’t mind us bailing them out in 2008 with hundreds of billions of us dollars when their banks were about to tank due to their bad investments.


40 posted on 08/07/2011 9:41:45 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Terry Mross

I think Im 25%


41 posted on 08/07/2011 9:42:54 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mlocher
Look at the price tag the German people will pay; it will top 100% of their GDP if they sign onto another bail out. If I lived over there, I wouldn't want to assune that debt, either!

Italy, not surprisingly, is going the way the TEA Party wanted to go here, a BBA and all. I would prefer a GAAP amendment instead for the US, no more hiding expenses "off ledger."

Greece is in the tank (with their long history of tax evasion and lax living, who would have thought it?), Spain blew their money on that financial sink hole of "green jobs," Ireland's banks played too fast and loose so it came back to bite them.

What a mess!

I just wish S&P had downgraded us last year, when it was all in the Dimwits hands. There would be no deflecting blame on the one group that was trying to AVOID this problem. As a fellow FReeper so eloquently put it, "It's like blaming the fire on the one who sounded the alarm."

42 posted on 08/07/2011 9:43:51 PM PDT by TheWriterTX (Buy Ammo Often,)
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To: Terry Mross

I have a 22 long and a bolt 22 mag, I love the 22 mag. I need to buy more ammo for it.


43 posted on 08/07/2011 9:45:04 PM PDT by jpsb
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To: mlocher
Oil is dropping like a rock right now and that should keep inflation in check for a few months

Funny thing, Oil was $102 last time I filled up and gas was $3.57

Last Friday Oil was $86 and Gas was still $3.57

44 posted on 08/07/2011 9:46:10 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: TheWriterTX

Looks like panic selling starting to happen in Asia, seeing 5% down now in a couple of markets.


45 posted on 08/07/2011 9:48:19 PM PDT by jpsb
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To: All
Nekkei


46 posted on 08/07/2011 9:48:39 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: mylife

Oil dropping is not good news, cuz it means that those that normally use the oil don’t see so much use on the horizon.


47 posted on 08/07/2011 9:49:57 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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Hang Seng


48 posted on 08/07/2011 9:50:21 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: editor-surveyor

I think consumer spending is going to dry up even more if possible. No one in their right mind would spend money they could save right now.


49 posted on 08/07/2011 9:51:44 PM PDT by jpsb
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To: editor-surveyor

Its the odd commodity that isnt going up isnt it?


50 posted on 08/07/2011 9:51:49 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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