Posted on 09/16/2012 4:48:28 PM PDT by blam
Here Comes $10,000 Gold...
Sam Ro
Sep. 16, 2012, 5:56 PM
"It has never been easy to have a rational conversation about the value of gold," wrote Ken Rogoff in a 2010 piece titled $10,000 Gold?.
But with the national debt passing $16 trillion and the Federal Reserve launching a unlimited quantitative easing, the gold bulls will increasingly tell you that the sum of their fears are coming true.
In this week's issue of Barron's, Jim McTague spoke to Guggenheim Partners Scott Minerd:
Hedging against the most pessimistic case without crippling the upside potential of a better or even miraculous case appears to be as unsolvable as the proverbial Gordian knot. Alexander the Great "solved" the intellectually challenging knot riddle by severing it with his sword. Scott Minerd, chief investment officer of Guggenheim Partners, offers a more reasoned but equally simple solution to the hedging conundrum: gold. In extreme circumstances—like miscalculations regarding inflation by the Federal Reserve—the metal could hit $10,000 per troy ounce, he asserts. Thursday, after the Fed disclosed its latest financial-stimulus scheme, the metal rose about 2% to $1,768.
The ultra bullish forecasts for gold aren't without precedent. Applying the "Pareto principle" – the idea is that 80 percent of the effects of something come from just 20 percent of the causes – Erste Group analyst Ronald-Peter Stoeferle argued that we could see $8,300 gold by the spring of 2015.
Citi's Tom Fitzpatrick also has an extremely bullish gold scenario out there. "We see no reason why this gold trend cannot perform as well as the last bull market in gold between 1970 and 1980," he told King World News. "If you replicated that move exactly, it will take gold to $6,300."
Inflation and technical pattern aren't the only ways to get to extremely high
(snip)
(Excerpt) Read more at businessinsider.com ...
How long has it been since we've heard predictions of $10k gold?
Here comes inflation.
Obama will screw the very people he says he cares about, while demonizing Romney as a rich wall street fat cat that aint “down wid de struggle”
Goldbug ping
I haven’t done any panning/sluicing in what seems like forever...
I’ve invested *heavily* in the precious metals of brass & lead. Are people going to throw gold bars and silver coins at zombie looters and gangs? LOL. Shoot them, stack them like cordwood and burn them. Or just let the buzzards and maggots feast.
Never gonna happen. Why not? Because once it gets to 2500-2600, I’ll give in and start buying. Whereupon, gold will instantly drop back to the 400-500 range. (Prior results are not indicative of future losses, but come on, now, already!)
If gold goes to $10K, what will a gallon of milk be..
Your ‘brass & lead’ will become currency too. 9mm’s instead of dollars. Imagine that? A currency that doubles as ammo. Now THAT’s buying power. Literally.
If the people pushing you to buy gold really believed it was going to increase by 600% or more, they wouldn’t be selling it at $1600.
Ammo (brass/lead) will always be “in style” and quite fungible. I can see some of the other commodities taking a dump, though.
Gold will be worth nothing if there is no currency to exchange with in value. We are headed for that world.
About $22.50 a gallon. (That's 5.6 times @ $4.00 a gallon presently)
"Ahhh, that technical analysis is a load of crap."
44.5 > 57 in a month. Tell me you've seen a more textbook double bottom than June > August.
Can't say I ever remember reading gold going to $10K. On the other hand, just a few months ago I remember reading the economy is doing great and gold is going sub $1K...
Gitcher’sef a cuppla’ hogs.
Exactly.. and at that price, I would think society will have collapsed.
4-legged, 2-wheeled or 12ga kind?
“Here We Go Again.
How long has it been since we’ve heard predictions of $10k gold?”
About as long as it’s been since we’ve heard predictions of Gold collapsing back to $600, from the crowd who missed out on the big run-up.
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