Skip to comments.BofA Makes The Case For $3,000 Gold
Posted on 09/25/2012 6:10:25 PM PDT by blam
BofA Makes The Case For $3,000 Gold
Everyone loves gold these days. Deutsche Bank sees $2000 gold soon. And Citi says it could go to $2500 in six months.
BofA, too: the firm recently initiated a $2,400 target price for the shiny yellow metal since the Fed's announcement of open-ended bond buying.
However, BofA analyst Stephen Suttmeier thinks there's a case to be made that gold goes even higher than the bank's official call.
In a note to clients today, Suttmeier writes:
The secular bull case for Gold $3000
We remain secular bulls on gold. Key chart and uptrend supports between $1600 and $1400 have held and we have viewed $1550-1500 as a good area to buy gold. The breakout above the year-long downtrend line completes the correction within the longer-term uptrend and targets resistances at $1800 and $1925. But, the secular bull market for gold points to a stronger rally to $2050-2300 and up to $3000 longer-term. The top of the rising channel from mid 2005 is near $2375 and reaches the $3000 area by early 2014. Key channel supports are in the $1600 and $1400 areas and rise ~$25/month. The chart below shows the secular bull market for gold.
Here is the chart Suttmeier is looking at:
BofA Merrill Lynch
(Excerpt) Read more at businessinsider.com ...
B of A. Yeah, they’re credible
Maybe I will get to retire after all.
Sell! Sell! Sell!
As long as you can pay for $50,000.00 loaves of bread anyway.
Gold should rise with the devaluation of the dollar (which is also coordinated with the G7-8-9 Nations via QE). Due to QE3 at 40B per month (or whatever), and also due to other nations also PRINTING MONEY it will force the price of commodities higher - Germany today stated that GOLD is not a commodity and therefore an EXCHANGE medium.
a 75% increase in the next year
that seems about right
although bad, thats not the big concern. country collapsing gold increases have to do with how fast it jumps
either way, there are no reasons to sell gold. good preserves buying power to some extent. in the event of total collapse, it will have SOME buying power, whereas dollars or stocks will have none
gold is a pretty, shiney metal....it is worth around $35.00 per ounce because it is pretty and malleable. The real problem is that the dollar is virtually worthless.......$4.00 for a gallon of $.50 gas???? $30,000 for a Chevie???? $10.00 and up for a minimum wage??? The reality of it all is that when you are 16 trillion dollars in debt, and you continue to print (money) it really cant be worth much. Why doesn’t the fed just crank out 16 1 trillion dollar bills and send them to china and call it even???
Buy gold, buy silver, buy lead and land, the Fed is out of control and is printing way too many dollars. Down, down, down, goes the value of my savings.