80 experts see $2,200/oz. average gold price ahead
By David Bradshaw - Real Money Perspectives
The 21st century kicked off with gold prices rising fivefold between 2001 and 2011. In 2016, following a brutal 44% price correction, gold prices are on track to rise above $2,000/oz in the years ahead say the experts.
"Four-digit gold prices signal the world is quickly losing confidence in paper currencies, the federal government and Wall Street," says Swiss America Chariman Craig R. Smith.
Mr. Smith views precious metals as the world's oldest and most trustworthy money system for dozens of very good reasons, as you will soon discover. This year could be the last major golden buying opportunity in the last decade.
Far from representing a market bubble, gold is emerging as the ultimate store-of-value currency at the very moment the world is awakening to the economic consequences of living beyond our means. Gold stands as the monetary guardian of honesty, freedom and liberty. Gold exposes the financial lies helping to fuel the recent cultural creep toward socialism in America.
MotleyFool.com reports: "We remain so substantially removed from any ultimate top in the gold price as to render bubble declarations repeatedly, predictably, and grossly premature. I continue track the fundamental drivers that I believe portend a continuation of this long-term trend beyond my personal target of $2,000 per ounce," writes Christopher Barker.
How high will gold rush?
Gold prices systematically grew about $100/oz. per year between 2003 and 2008. Gold prices averaged $300 in '03, $400 in '04, $500 in '05, $600 in '06 and $700 in '07 and $800 in '08. But in 2009 prices blasted past $900, $1,000 and $1,100 to top $1,200/oz! In 2010 a typical correction sent prices dipping below $1,100 before rushing back near $1,400. In 2011 prices rushed to $1,850, then dipped back near $1,050 in 2015. In 2016 scores of experts are forecasting gold will rise above $2,500/oz.
"Who in their right mind would suggest that gold will eventually reach $2,500, let alone $5,000 or even $10,000? According to veteran financial commentator Lorimer Wilson, editor of Munknee.com: "Today there are almost 70 economists, academics, gold analysts and market commentators who believe gold may go as high as $10,000 an ounce." Sound familiar?
"The most bullish news for gold is that the public hasn't gone crazy for it yet. Demand for gold coins and gold funds is certainly higher than it was a few years ago, but we're a long way from speculative mania," reports The Wall Street Journal.
"The damage caused by the financial excesses of the last quarter century was forcing the world's authorities to take steps never tried before. This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold," reports The London Telegraph.
"When greed is finally replaced by profound fear, 'faith' in fiat money will fail, and there will be a profound flight out of all paper and digital financial instruments, and into physical gold and silver. The reason we have not yet reached $2,000 gold is because this has not yet happened. When it does, $2,000 gold may well be the last legible signpost on a road that connects normalcy with financial chaos," reports Paul Saur at Kitco.
Here's a list of over 80 prominent analysts and gold experts offering their perspective on where gold prices are headed in the next few years. Their combined average gold price expectation is $2,200/oz. gold! Count for yourself the dozens of good reasons for owning gold today. We've listed 24 major reasons in the conclusion.
BILL MURPHY, Founder, GATA.org, Lemetropolecafe.com
"What we are seeing is the result of years and years of a gold price suppression scheme BLOWING UP! Gold is moving up because the crooks have lost control! GOLD is going to go to $3,000/oz and silver will top $100/oz." CNBC, 2.24.16
JOCHEN HITZFELD, UniCredit SpA’s, Munich
"Bloomberg's the most accurate gold forecaster tracked in the last three quarters raised his estimate for the metal’s average price next year by 12% to $1,400/oz. Bullion will average $1,600/oz. in 2012..." -Bloomberg, 9-7-10
EGON VON GREYERZ, Matterhorn Asset Mgmt, Switzerland
"Gold entering a virtuous circle. Fundamental and technical factors for gold are now in total harmony and gold is entering a virtuous circle that will drive the price up at its fastest pace since this bull market started in 1999. We expect gold to start a substantial rise now which will continue for 5-10 months before any major correction. We are now entering a period when most major asset classes and in particular stocks, bonds and currencies are starting a major decline. Physical gold and possibly other precious metals directly controlled by the investor will be a vital part of a wealth preservation portfolio." -Goldswitzerland.com, 9-6-10.
MARTIN HUTCHINSON, Editor, The Bears Lair
"It sounds like a gold bug's dream. But looking back to the last inflation-adjusted peak price in 1980, it's far from impossible that the gold price could soon go above $5,000 an ounce. Gold can also be regarded as an alternative to money. Broad global money supply, known as M3, is now in dollar terms about 10 times what it was in 1980. Scaling up by money supply and deflating by the gold supply, the 1980 peak price would be equivalent to about $5,700 an ounce today." -Mineweb, 5-14-10
PETER SORRENTINO, Manager, Huntington Asset Advisors
"A bubble is forming with sovereign debt. We want to hold gold as a reserve of wealth because there’s a big devaluation of G-7 currencies ahead. Gold may soar to $1,800 an ounce within three years." -BusinessWeek, 5-11-10
DUDLEY PIERCE BAKER, Editor, Precious Metals Warrants and Insiders Insights
"Gold will hit its parabolic peak between $2,450 to $3,500. We see the strong possibility of this event happening within the next 18 months. Our target price aligns very closely with the projections of others, i.e. Jim Rogers, Bob Hoye, David Nichols, Marc Faber and Pamela & Mary Anne Aden. When we start to see gold go parabolic, rising day after day and everyone in the world getting excited and joining the party, then we will know gold is in a bubble." -Goldseek, 4-29-10
JOHN EMBRY, CHIEF INVESTMENT STRATEGIST, Sprott Asset Management
"We are in the early stages of what I think might turn into some sort of a hyper-inflationary condition because there are not enough savings in the world to even remotely service the amount of sovereign debt that is going to be created in the next few years. So you are going to see the creation of paper money the likes of which we have seldom, if ever, seen in history. There are so many paper claims on each gold delivery bar, that if everyone decided one day that they didn't want their paper gold, they wanted the gold that was supposedly underlying it and demanded it - It would just blow the top off the market. I think, before this is over, that will occur. If gold isn't up at least $500 in the next six months, I will be surprised." -MineWeb, 4-21-10
JEFF NICHOLS, MD, American Precious Metals Advisors
"The links between the dollar and gold are likely to continue to weaken in coming months as major currencies continue to decline. We will see $1,500 gold at some point in 2010 - with lots of ups and downs. There is a very good chance we will see $2,000, even a good possibility of $3,000 or higher over the next several years." -MineWeb, 3-3-10
DR. MICHAEL BERRY, Professor, Commentator
"Is there any stopping the powerful bull market in precious metals? You must answer only one question: Will Washington decide to stop spending and printing? If our policymakers in Washington agreed to cease and desist in printing dollars to protect the banks too-big-to-fail and to run trillion-dollar deficits it is quite possible that the dollar could stabilize and strengthen. I forecast the following most likely scenario: 1) The dollar will test its March 2007 low point of .7132. 2) Gold will appreciate over the next two years toward the $1500 mark, silver toward $35. 3) The current eight-month bear market equity rally will stall," -High Gold Prices Here To Stay, Forbes, 10-21-09
BYRON KING, Author, Resource expert
"I think that gold could be $2,000 an ounce. We're looking at the long-term loss of value in the dollar, what with the tremendous levels of government expenditure-this so-called stimulus. It's wrecking the dollar. All around the world people are looking for alternatives. Because we're in a world that appears to have encountered peak gold... If you look at historical production, worldwide gold output reached a top right around the year 2000-2001." -Peak gold and weak dollar means $2,000+, Mineweb, 9-30-09
MARY ANNE & PAMELA ADEN, The Aden Forecast
Gold has been moving up quietly this decade and your average person or investor is still essentially unaware of its strength, but that will likely soon change. Once gold embarks on a stronger phase of the bull market, it's not inconceivable that gold could eventually reach the $2,000 to even the $5,000 level before the mega rise is over, looking out to the years ahead." -AdenForecast, 9-22-09
RON PAUL, Congressman, former presidential candidate
"I foresee the price of bullion rising from today's levels. It's trebled in the last ten years. There's no reason it can't triple in another ten years, that wouldn't surprise me." WSJ, 9-16-09
BUD CONRAD, chief economist, Casey Research
"Based on long-term analyses of macroeconomic trends such as the money supply, a lot of ratios get you into the $4,000/oz. to $5,000/oz. gold price level without any problem." WSJ, 9-16-09
MARTIN ARMSTRONG, Former President, Princeton Economics
"The technical analysis on Gold, based on a monthly chart, indicates the first real resistance is formed by the Primary Channel at $1,350 - $1,750 between 2010 and 2012. This level is the "danger zone" of a true meltdown in Public Confidence. If gold exceeds this level and it too forms the subsequent support, now we are looking at the $3,500 to $5,000 target zone. This is where we see the potential for Gold is a true economic meltdown of Confidence." -Will Gold reach $5000 plus?, MoneyTalks, 9-2-09
DONALD W. DOYLE, Chairman, CEO, Blanchard and Company
"Gold is performing strongly at the same time the stock market is making a mild rally and as the dollar continues to stay at a level that we consider to be inordinately high. Typically, gold would be declining - but that's not happening, and there are solid reasons why. If the Fed fails to keep foreign capital interested in financing its twin deficits, the U.S. dollar could spiral downward, providing strong support to commodity prices. The weaker dollar will then help gold break through to new record price levels of $1,200-$1,500 per ounce." Mineweb, 8-5-09
HOWARD KATZ, Editor, Author "The One-handed Economist"
"The Federal Reserve is lying about the nation’s money supply (M1). The current figure for money supply is being given as $1.6 trillion. The actual number is $2.34 trillion. What then can we project for the gold price at the end of the second upswing of the commodity pendulum? My previous calculation for the price of gold was $3500/oz. It might make sense to take the original $3,500 and multiply it by a factor of 4. This would give a gold price of $14,000." -Goldbug.net, 6-15-09
EDWARD ZORE, CEO, Northwestern Mutual Life Insurance
"Gold just seems to make sense; it’s a store of value. In the Depression, gold did very, very well. The price could double or even rise fivefold if the economy continues to weaken. Northwestern Mutual has accumulated about $400 million in gold. Gold gained 10% last month, the most since November. The commodity has more than tripled since 2000, rising for eight straight years." -Bloomberg, 6-2-09
JIM WILLIE,CB, PhD in Statistics, Goldenjackass.com
"The gold price follows the central banks monetization and diverse federal fiscal stimulus worldwide, and has ignored season. The only resistance will be the illegal kind from naked shorting of futures contracts by the usual villains who operate at the behest of governments, protected from prosecution. They will not be able to stop what comes. A challenge of the $1,000 level could come very soon. Once $1,000 is penetrated in clear fashion, with excitement and attention, an overshoot of $1,300 could even occur." GoldSeek, 5-22-09
JOHN ING, CEO, Maison Placements Canada Inc.
"Most disturbing is that the current global financial crisis has caused institutions and governments alike to violate their trust with investors. Agreements are being torn up and the Treasury Department isn't even keeping its word. With gold near $1,000 an ounce it has become the world's defacto currency. Gold has reached new highs in every major currency in the world except for the dollar and we believe it will soon achieve new highs, in dollars this time to $2,000 per ounce," reports SafeHaven, 5-5-09
JEFFREY RHODES, Trader, International Assets Holding Corp.
"Gold may be 'off to the races' if prices break resistance levels at $950 to $960 an ounce. Prices may surpass $1,200 an ounce this year, more than the record $1,032 reached in March 2008." -Bloomberg, 5-3-09
JOHN READE, UBS AG Analyst
"Gold will rise to $1,100/oz. within three months, Gold will probably continue to follow inflation expectations in the near term, although it remains vulnerable to improved risk-asset sentiment. Other central banks may also announce credit easing, and this could help sentiment toward gold." -Bloomberg, 3-23-09
DANIEL BREBNER, Analyst, UBS
"Gold has a potential upside of $2,500 an ounce, for a surge of 170% above current prices and a downside risk of about $500 an ounce, or less than 50%. The current environment is one which can best be characterized as having a 'low margin of error' for central bankers; with the prospects for deflation or inflation as becoming more extreme." -FT, 3-10-09
CHRISTOPHER WYKE, Schroders commodities product manager
"In the next 12 months a gold price of $2,000 an ounce is quite likely. If you saw the dollar resume its fall and maybe toward the end of this year, you started seeing people worried about the inflationary consequences of U.S. government policies, then gold prices could move up very sharply," -Reuters, 3-9-09
CHRISTOPHER WOOD, Equity strategist
"Gold is likely to more than triple from the current level to $3,500 in 2010. It’s the only form of money or credit not contaminated by the credit system - and the fact it’s still money is that central banks still own a lot of it, the global paper currency system will steadily deteriorate, eastern and central Europe will face a full-scale currency collapse, putting huge pressure on western Europe. The US is facing a deflationary collapse more severe than the crash that hobbled Japan’s economy in the 1990s, leaving gold as the only defensive play for investors." -BusIntel, 3-1-09
SASCHA OPEL, Publisher, Orsus Consult GmbH, (German commodities newsletter)
"I am absolutely convinced that we will not peak in 2009! I believe that the price of gold is manipulated. I believe that we will go over $1,200 by the end of 2009, but I am not sure if we can defend that level. The establishment surely will do something so that the price will not go too high in too short a time. In looking back at the rise of gold from $35 to $850 during the ‘70s, the former Fed Chairman Paul Volcker said, "It was probably a mistake to allow gold to rise so high." And Volcker now is on the Obama-Team! We will not have a peak like 1980, but gold will rise constantly. Buying on dips is the best strategy. Perhaps sometime later (in a few years, but not ‘09) gold will start to move $50 or $100 for some days in a row to $2,500 or more. Then I would sell or hedge some 'virtual' gold over the markets (futures, ETFs, short-certificates etc.), but I would not sell the physical stuff!" MineWeb, 2-28-09
HANS GOETTI, CIO, LGT Bank in Liechtenstein
"As governments print more money to pull the global economy out of a recession, gold may spike to $3,000 a troy ounce as a result," -CNBC, Pros Say: Gold to Spike to $3,000, 2-24-09
BRIAN HICKS, co-manager, U.S. Global Investors' Global Resources Fund
"Gold lagged the commodity bull market that we saw up until 2008. So it's not out of the question for gold to rise to its inflation-adjusted high ($2,200/oz.), particularly given the fact gold is a small market and there are going to be a lot of dollars with people looking to place their money in tangible assets rather than intangible assets at this point in time." -WSJ, Gold's 'Perfect Storm' Rages On, 2-23-09
MARTIN MURENBEELD, Dundee Wealth chief economist
RALPH ALDIS, US Global Investors precious-metal-fund comanager
"Seasoned forecaster Dundee Wealth Inc chief economist Martin Murenbeeld and US Global Investors precious-metal-fund comanager Ralph Aldis both cite the exact same long-term $2,300/oz figure, Murenbeeld explaining that the $850/oz gold-price peak of January 2008 translates into a $2,300/oz peak in today's money. Aldis says: 'In the longer term, you're talking gold as a fairly safe investment, and it wouldn't surprise me to see gold go back, on a inflation-adjusted basis, to $2,300/oz.'" -MiningWeek, 2-17-09
GARY DUGAN, Chief Investment Officer, Merrill Lynch
"Gold prices may hit $1,500 an ounce in the next 12 to 15 months. With confidence in currencies shaken to the core, the yellow metal is increasingly assuming the role of 'the most trusted currency'. We have never seen such a rush to buy gold. It's bringing in security and it's still affordable. While demand for gold has been rising production has been declining. South Africa, which accounts for the major share of global gold production, is facing political issues and has energy problems. The greenback will decline in value by the middle of this year when people will begin to realize that President Obama's policies are not having the desired impact." -Business24-7, 2-3-09
ROBIN GRIFFITHS, Technical Analyst, Cazenove Capital
"Gold is heading toward $1,500 in the next 12 months. Cash doesn't give you a return, at the moment not one worth having, so the negative about gold has gone away. It does traditionally preserve value both in panicky inflationary times and deflationary times." -CNBC, 12-15-08
PHILIP MANDUCA, Head of Investment, ECU Group
"The price of gold is set to rally to $2,000 per ounce next year as an improvement in the economic outlook causes fear of inflation and currency debasement." -CNBC, 12-3-08
FRANCISCO BLANCH, Analyst, Merrill Lynch
"Gold prices could hit $1,500 as global plans to rescue the financial industry are set to increase inflation pressures. The unintended consequence of the ongoing financial bailout will be a return of inflationary pressures to the commodity markets." -MW, 10-14-08
ROB LUTTS, President, Cabot Money Management
"The action of central bankers globally is going to do two things for investors. It will debase the value of currency; and unleash — eventually — inflation. Not next month, not next quarter, but we think inflation is coming back. With world gold production down 10% from its year 2000 peak, the precious metal will hit $1,000 over the next six months, and $2,000 over the next few years." CNBC, 10-8-08
PETER MAJOR, Cadiz Financial Services
"I think gold will go back to $1,000 just because the U.S. is going to have to print so much money to foot the bill for everything they want to do. They've created close to $5 trillion new debt in the last eight years. It looks like they're going to have to add another trillion in debt here real quick." -Goldseek, 9-24-08
MICHAEL YORBA, founder Yorba Trading Network, Yorba TV
"Why do I think crude oil is going to $300 bbl and gold is going to $3000/oz.? The real problem we face with the 'Counter Party Risk Credit Default Swap' is that we have a massive devaluation of huge block trades backing virtually all insurance and financing of big companies around the globe. The $1 trillion bailout is just a band aid on a $60 trillion problem. The US will need to raise the other $59 trillion to bail out the rest of the financial sector, which means that the US will need to sell more debt instruments. This could very well devalue the US dollar one heck of a lot more than it already has." -Yorba.TV, 9-22-08
JOHN HILL and GRAHAM WARK, Citibank analysts
"Frankly, we're surprised, that gold is not already at $2,000 an ounce. Gold will benefit from both the 'gloom & doom' and 'muddle-through & monetization' scenarios, possibly regaining $1,000 per ounce at year-end and even doubling or tripling in the long term," -Mineweb, 9-19-08
FRANK BARBERA, editor, The Gold Stock Technician Newsletter
"There’s likely to be a lot more downside pressure on the financial and monetary side and the government is going to have to pay for this. They’re going to have to print up the digital money to keep the system viable, and that means a higher cost of goods for all of us. We’ll see inflation. And that should power the precious metals to new all-time highs in 2009 and well beyond. Looking out two or three years, I’m confident we’ll see gold prices above $5,000 an ounce. I’m confident we’ll see silver prices above $100 an ounce." -Stockhouse, 8-26-08
IAN WILLIAMS, Charteris Treasury Portfolio Managers
"Gold is one of the biggest laggards and the one that confuses investors most. Unlike oil, copper, nickel and a host of other commodities which have seen rises of between eight and thirteen fold increases in the last ten years, gold has risen a mere three and a half times from its low. Gold would have to rise to $2,500 an ounce at present to restore the gold/oil ratio to its historic norm." -Telegraph, 7-4-08
RONALD STROEFERLE, International Equites Analyst, Erste Bank
"The price of gold will jump to $2,300 in the long term based on the remonetization of gold as money. Gold has been a store of value for over 3,000 years and will continue to be so for thousands of years in the future. We recommend 10-15% allocation into commodities, with the bulk invested into gold." -CNBC, 6-27-08
MARK LEIBOVIT, Chief Market Strategist, VRTRADER.com
"Gold is in a 20-year cycle that began in 2001. My research indicates gold will top near $2,800/oz. and may rise above $5,000/oz. which could prompt a switch back to the gold standard for the U.S." -MoneyShow 6-16-08
ROGER WIEGAND, Editor, Trader Tracks
"We forecast gold at a minimum price of $2,960 with a probability of much higher prices. Silver is near $17 and $50 is a sure thing with our expectations of $176 to $256 within five years. Markets ebb and flow with cycles and profit-taking. Do not be fooled with hollow selling bearish news and threats by those who prefer gold sell-off to lower prices. Gold is the only real money in the world and its rally has barely begun." -Webeatthestreet.com 6-12-08
RICHARD DAVIS, Fund manager, BlackRock
"There's a good chance that it may go back above $1,000 in the short- to medium-term. We're headed for inflationary times and gold has always been a safe asset to protect your wealth against inflation." -Reuters, 6-11-08
TONY LESIAK, Analyst, UBS
"Gold may have eased back from last week’s record high of $1,030.80 an ounce, but the yellow metal is well positioned for growth. Gold appears relatively cheap compared to oil on a historical basis, holding the potential for gold to more than double to levels where it will regain its long term average relationship." -Financial Post, 3-25-08
THOMAS WINMILL, Manager, Midas Fund
"There is still considerable upside left to gold, although not without a short-term correction. Gold may someday reach a peak of $2,000 an ounce. For most investors, gold should represent a 5 to 10 percent asset allocation," -MarketWatch, 3-24-08
ERIC SPROTT, founder and chairman, Sprott Asset Management
"Turmoil in global credit markets may lead to the collapse of a North American bank, pushing bullion prices up to $2,000 an ounce as investors seek a haven in gold. We're in a systemic financial meltdown. Government bonds are a joke at the interest they're paying. You can buy gold or other real things -- gold, silver, platinum, palladium -- things that hold value." -Bloomberg, 3-11-08
MICHAEL WIDMER, Analyst, Lehman Brothers
"All the newsflow coming out of the U.S. is hugely bullish for the gold market. In the end, what lower interest rates mean is that it will be difficult for the dollar to come back strongly. Inflationary pressures are something that are also playing into the market. Fundamentals are strong and I think $1,000 would not be an end. We are going to go higher from there." - The Guardian, 2-29-08
SEAN BRODRICK, Editor, Money and Markets
"Gold has enjoyed a great run over the past few years, but it hasn't been a straight path. But one strategy has worked time and time again: Buy the dips. It takes courage to buy when everyone else is selling. But if you do your research, you can act with confidence that even if gold dips lower than you're buying it, the upside potential is huge. My preliminary price objective for gold is $1,065 per ounce, and it could go a lot higher than that." -The Coming Gold Surge, Investors.com, 2-4-08
DAVID GAROFALO, CFO, Agnico-Eagle Mines
"We don't see any reason in this cycle why gold shouldn't reach its real all-time high, which is actually about $2,200 an ounce," he told reporters after a presentation in Toronto, adding the time frame of three to five years. -Reuters, 1-10-08
OTTO SPORK, Hedge fund manager, Sextant Capital Management Inc.
"The price of the yellow metal is en route to $1,500 an ounce within the next two years. We could easily see $35 or $40 per ounce for silver over the next couple of years. We feel that certainly the junior gold and other resource stocks are nowhere reflecting their true value." -Globe&Mail, 12-4-07
JAMES DINES, Editor, The Dines Letter
"We would be very surprised if the gold price did not blast right through the old highs, and we reaffirm our old targets for gold of $3,000 to $5,000 an ounce (Plus silver over $100 an ounce) ... gold is not merely a colorful trinket but a monetary asset, and when mass fear strikes at the heart of paper money, the stampede to gold will be awesome." -MW, 11-5-07
DAVID DAVIS, Analyst, Credit Suisse
"The gold price will soar to more than $1,000 per ounce over the next five years as dwindling supply of the precious metal combines with increased demand. Upward pressure on the price of gold is being driven by the economic environment surrounding the US economy and a change in the supply and demand dynamics surrounding gold." -London Telegraph, 11-1-07
PAUL O’BRIEN, Analyst, Raymond James
"We believe this rally is still in its infancy with a ‘toe in the water’ ahead of the upcoming 4Q. The gains for gold can be attributed to the interest rate cut by the Federal Reserve and continued weakness for the greenback." -National Post, 9-24-07
AUBIE BALTIN, CFA, CTA, CFP, PhD
"When FEAR combines with full blown Greed, there is no longer any more talk of correction as prices begin to jump 5% to 10% in one day and people line up to buy bullion as signs pop up everywhere, 'WE buy and sell gold'. Once both fear and greed take over the market and the short squeezes begin in earnest, there is no way of predicting how high the high. $2,200 gold and $100 silver seems the barest minimum targets, maybe $5,000 or even $10,000." -FiendBear, 9-24-07
JOHN HILL, Analyst, Citigroup
"Gold appears to be entering a new investment-driven phase and has re-asserted itself as a safe haven. Gold will be one of the top beneficiaries of the 'Re-flationary Rescue,' which should bode well for hard assets and basic materials. I would not be surprised if gold were to break its all-time high of $850, or even $1,000 or higher in a new cycle of global credit creation and competitive currency devaluations." -National Post, 9-21-07
DONALD LUSKIN, Chief Investment Officer, Trend Macrolytics
"I've written in this column about inflation often over the last three years. I've said gold was going to $1,000. If the Fed cuts rates, then I'm going to have to admit I was wrong. Then gold isn't going to $1,000. It's going to $2,000." -Smart Money, 9-7-07
AMBROSE EVANS-PRITCHARD, International Business Editor, London Telegraph
"Gold will fly once investors can see that neither of the two reserve currency pillars (euro and dollar) is on a sound foundation, and once the pair are engaged in a beggar-thy-neighbor devaluation contest to stave off a slump, this would amount to a partial breakdown of the monetary system. Gold will not stop at $800. It might well go beyond $2,000." -London Telegraph, 7-23-07
NED W. SCHMIDT, CFA, CEBS, Schmidt Management Co.
"Monetary illusion evident in the value of paper equities versus the return on paper equities should not be ignored. Asset meltdown now taking place below the surface in mortgage related investments held by speculative hedge funds. As that happens and carnage spreads, the U.S. dollar will come under increasing selling pressure. Gold will be the investment that benefits, and continue the move to more than $1,400." -Financial Sense, 6-20-07
JP MORGAN CHASE & CO, Third largest U.S. bank
"Gold may rise to more than $1,000 an ounce as demand from India, China and exchange traded funds increases and production of precious metal falls." -Bloomberg 6-7-07
DAVID ROSENBERG, Economist, Merrill Lynch
"The current bull market for gold could last another five years, if certain conditions are in place, and the metal's price could soar to an incredible $1,500/oz. Investors should buy gold to beat the current period of stagflation." , -Platts , 4-11-07
JIM SINCLAIR, Author, Chairman of Tan Range JS Mineset
"Gold has no agenda, no allegiance and functions as honest money in a world of lies, corruption, overstatement and spin. $700 to $705 might well be a place certain interests will try and block gold, but their only hope is for momentary success. $761 is yanking at gold from the front with great power. $887.50, a break above $1000 and $1650 are putting their grip on the royal metal as well." JSmineset.com, 2-25-07
LOUISE YAMADA, Managing Director, Yamada Technical Research Advisors
"Gold is the purest play against the dollar. I see gold surpassing $730 in 2007 on its way to $3,000 within a decade. Gold is probably the most straightforward investment to go with in this environment because of its consistent inverse relationship to the dollar.Other countries are trying to diversify their dollar holdings. They're buying gold and anything they can to get out of the dollar." Bloomberg, 12-11-06
JULIAN PHILLIPS, Analyst, GoldForecaster.com
"We would not be surprised to see $1,000-plus gold from sometime in 2007 at the earliest to 2009 at the latest. Physical demand is now being added to by the turnaround in hedge funds' change of heart to the upside. The potential oil shortage and more-than-likely ruptures in the stability of the global-money system when the dollar starts to suppurate." -Marketwatch, 11-3-06
DR. CLIVE ROFFEY, Elliot Wave Theory Analyst/Publisher, Gold Action
"I believe that the current correction is a more likely to be a minor before a move to well above the previous $720 peak, probably above $800. When the minor correction should occur leading to a wave five that will eventually peak well above $1,000 before we hit the next major correction." -321gold, 10-6-06.
HOWARD RUFF, Editor, The Ruff Times
"Gold and silver are now early in a historic bull market that will dwarf the 500-1700% profits we made in the '70s. Gold will hit at least $2,172 and $100 silver is inevitable. Investment vehicles to avoid: Stocks, bonds, fixed-return investments like utilities, REITs, residential real estate, ARMs (adjustable rate mortgages). Investment winners in bull markets: Gold, silver, copper and other base metals, uranium. The most powerful, completely essential factor affecting gold is monetary inflation. The most compelling force affecting silver today is the supply/demand equation." -Marketwatch, 8-24-06
DR. DAVID DAVIS, Senior Gold Analyst, Credit Suisse Standard Securities
"Between 2007 and 2010, supply-and-demand dynamics will undergo irreversible change, caused by a decline in global mine and official sector supply and increased demand from China and the investment community. We still see a gold price of $700/oz, $800/oz and $1,200/oz by 2008, 2010, and 2015 respectively." -Resource Investor, 8-4-06
ROBERT KIYOSAKI, Author, Lecturer, Rich Dad
"I still think gold will go to $1,500 an ounce. I'm betting against the U.S. dollar. Gold is a hedge against U.S. government mismanagement. My family members have a tradition of saving all their spare change for months on end and then trading all the coins in for a single gold coin." -Washington Post, 6-20-06
STEPHEN LEEB, Author, The Coming Economic Collapse
"Gold's downside is paltry compared to the upside potential. Gold could reach a price many times higher than it's at today, regardless of whether inflation or deflation becomes the problem. So we remain buyers of gold along with energy and our low-risk hedges." The Complete Investor, 6-12-06
HARRY SCHULTZ, Analyst, International Harry Schultz Letter
"My view has always been: current governments (which are bank-owned) won't voluntarily return to a gold standard, with its discipline on money creation. But, when the price roars to, say $1,600, they'll quite possibly be forced to do so, to appease a clamor for sound money - e.g. Bretton Woods II. The price could go to $2,000 while they debate new rules. Washington insiders would see it as their last chance to save the US dollar as a reserve currency. If they don't, the euro, yen or yuan could make a bid for that status ... If no rules are made at $1,600, gold could keep climbing till they do. Hello $3,000." -MW, 6-5-06
PHILLIP GOTTHEFF, President/Commodities Analyst, Equidex Inc.
"The gold market knows inflation is already here ... which helps explain the hysterical surge in prices in 2006... ETFs have expanded the metals market to now include institutional investors... With Goldman Saks forecasting $100+ oil I think we could see $1,000-1,500 gold easily... Why hoard? Because investors are afraid of paper. If we were to try to monetize our paper with gold the price would be in the $10,000/oz. - $20,000/oz. range." -CNBC "$1,000 gold debate" 5-9-06
CRAIG R. SMITH, Author/Chairman -- Swiss America
"Gold is clearly headed toward $1,000/oz. and is still a great bargain today! Price corrections are the sure sign of a healthy bull market -- offering yet another opportunity to buy the dips in this ongoing secular bull market." -CNBC Squawk Box,4-7-06
PAUL MYLCHREEST, Analyst, Cheuvreux Investment
"We also see the possibility of a spike to $2,000 or higher, if the story on diminished central bank gold reserves becomes widely accepted, if central banks in countries with large US dollar holdings compete to buy gold and diversify forex reserves away from dollars, and if the U.S. economy slides into either high rates of inflation or deflation." -Mineweb, 2-6-06.
JIM CRAMER, Founder, Thestreet.com, Host -- Mad Money, Real Money
"Gold could reach $1,000 if the Chinese stop buying our paper. Once the levee to the Treasuries breaks, the easy high ground worth gaining will be gold. Any portfolio designed to counter government-mandated inflation has to be bedrocked in gold" -New York magazine, 10-10-05
JAMES TURK, Founder, Goldmoney.com
"Gold is going much higher, and the $8,000 [per ounce] I mentioned a couple of years ago is probably as good a target as any. There are two aspects to what's driving the gold price: First, there is strong physical demand around the world. When gold crossed the $500-an-ounce level, people started buying gold in anticipation of monetary problems. Second, the physical demand for gold is causing a huge problem for the gold shorts. There has been a large gold carry trade in place. It is very possible gold could have a massive spike in the next six to 12 months to as high as $2,000, driven by these factors." "GOLD MINE", -Barrons, 5-29-06
JIM ROGERS, Author/Adventurer, Hot Commodities (former George Soros partner)
"Mr. Rogers, who foresaw the start of a commodity rally in 1999, told Bloomberg the boom in energy and raw material prices will endure, driving gold to a record $1,000 an ounce. The shortest bull market for commodities lasted 15 years, the longest 23 years, so if history is any guide, they've got a long way to go. This is not a bubble." -Bloomberg, 4-19-06
RICHARD RUSSELL, Editor, Dow Theory Letters
"Gold is now being accepted as the fourth currency along with the dollar, the euro and the yen. But there is a difference. Gold is also being recognized as the tangible currency and the ONLY SAFE currency. That gold pays no interest -- but is still at an 25-year high in terms of dollars -- is a testament to its value and safety in the eyes of sophisticated investors." Dowtheoryletters.com
J. TAYLOR, Editor, J. Taylor's Gold and Technology Stocks
"This is a different gold bull market and most bullish of all is that fact that this is still a stealth bull market. The voice of the global market is just starting to express a declining confidence in the dollar but with a coverage of only 1.7% [in U.S. gold reserves] at close to $700/oz., I believe we are still in the very early stages of a major gold bull market. We have a long, long ways to go toward $3,000 and beyond." -Howestreet.com
JOHN HATHAWAY, Portfolio Manager, Tocqueville Gold Fund
"Gold is in a bull-market trend, and there are a lot of reasons for that, and we will see higher prices. People shouldn't be surprised to see gold trade in the four digits." -Barrons
MARC FABER, Author, Tomorrow's Gold
"A vicious drop in the Dow coupled with a vicious rise in gold, possibly pushing gold to an astounding $2,000, $3,000 or even $6,000. Commodities are an asset class for the first time in history." Marketwatch.com
BILL BONNER, Author/Editor, Daily Reckoning
"The price of gold may go far higher than $1,000/oz. - depending on what else is going on in the economy and the markets. But this will be a time to be careful...when we stop adding to our positions and begin to reduce them. Gold is now cheap and almost hidden. People are buying it for the right reason: because it is cheap. We see signs, though, that gold is coming out of the closet and the financial press is beginning to notice." Dailyreckoning.com
Lord WILLIAM REES-MOGG, Author & Economist
"I expect gold to reach $1,000 an ounce in the foreseeable future. The price of gold is linked to the price of oil and to the movements of the dollar... oil is probably headed towards $100 a barrel. If there is any shooting in Iran, prices will go through the roof. That, however, is one reason for thinking that there may not be any attack on Iran. The world's oil supply cannot afford it." -MoneyWeek
ROBERT MCEWEN, CEO, U.S. Gold Corp.
"Gold prices may reach $2,000 an ounce by 2010 on demand for an alternative to currencies. You have much more money than there is gold, and as people see their currencies falling relative to gold, they're going to be saying `Maybe I should have some of this'." -Bloomberg
JOHN PERSON, President, National Futures Advisory Services
"As more and more investors start allocating more resources in gold, we could see $800 and as high as $1,000 by year's end. All the elements are in place for such a move, and it would not be unrealistic to achieve in a relatively short period of time." -Marketwatch.com
KEVIN KERR, Commentator/Author, Marketwatch.com
"Golden Opportunity: The case for $1,000 an ounce... If your thing is to hold the actual gold in your hand then numismatics (coins) or bullion are the way to go." -Marketwatch.com
PIERRE LASSONDE, President, Newmont Mining Corp.
"The price of bullion may exceed $1,000 (U.S.) an ounce within five to seven years as demand growth driven by Asia outstrips global supply." Globe&Mail
ADAM HAMILTON, CPA, Zeal Intelligence
"If our current gold rally truly unfolds into a Great Gold Rally, $1,000 gold is merely the first stage. A gold bubble, which will probably ultimately happen as a way to climax the coming gold mania maybe five to seven years out, could easily launch gold above $5,000 per ounce. The actual top of a new gold bubble at the final pinnacle of another Great Gold Rally could touch $6,000+ per ounce!" -Zeallc.com
EMANUEL BALARIE, Senior Market Strategist, Wisdom Financial
"I think gold prices will eventually shatter even my own bullish expectations of $1,000/oz. If you have not entered the gold market, waiting for an opportune time might be too late. Keep in mind that regardless of what the media is telling you, gold is still cheap at these levels." -CNBC Squawk on the Street
NICK MOORE, Chief Metal Analyst, ABN Amro
"$1 000 gold is by no means an outrageous forecast. It's a cocktail of positive stimuli for gold, you get the spillover of people buying into commodities, whether its copper, aluminum, soft commodities or precious metals. People are moving there." - Fin24.com
PAUL VAN EEDEN, Managing Partner, Cranberry Capital LLC
"If 1979 to 1980 is anything to go by, gold prices could exceed several thousand dollars per ounce." -Bloomberg
JON NADLER, Investment Products Analyst, Kitco
"Gold prices actually started their life at $35 per ounce in the early 1970s. From there, it went to $850-$875 -- a twenty-five-times-over move. Gold began its latest move up at $252, so prices at $6,250 can't be ruled out either, in terms of magnitude of the move." -Marketwatch.com
CONCLUSION: 24 Reasons Why Owning Gold is Just Common Sense ...
1. Gold is money: Gold now accepted as 4th global currency ($, Eu, Y).
2. Supply/Demand: Market dynamics, irreversible changes in mining output.
3. Protection: Continued risk and instability of the U.S. paper dollar standard.
4. Practicality: Best and simplest means for investors to hedge uncertainty.
5. China/India: Growth nations are buying gold/commodities to hedge U.S. debt.
6. Privacy: Certain gold coins offer private ownership benefits over bullion.
7. Gold going mainstream: The average portfolio diversification is only 2%.
8. Central bank buying: The world is diversifying reserves away from dollars.
9. Inflation hedge: The most powerful factor driving gold is monetary inflation.
10. Secular Bull Market: Commodity bull markets last 15-23 years on average.
11. Low risk: Gold's downside risk is paltry compared to the upside potential.
12. Good timing: Do not worry about gold entry points if you don't own any.
13. Gold an accepted asset class: For the first time in recent history.
14. Price corrections: A sure sign of a healthy bull market, buy on dips.
15. Geopolitical risk hedge: Gold prices reflect rising global and terrorism risks.
16. Gold in your hands: Physical money is safest way to own precious metals.
17. Big money buying gold: ETFs, corporate, insurance and pension funds.
18. Gold is no bubble: Parabolic rise could launch gold above $5,000/oz.
19. True value: Regardless of what the media says, gold offers true value.
20. Gold is Constitutional money: fulfills the Founders vision of money.
21. International money: Accepted worldwide, rural and urban liquidity.
22. Asset diversification: Gold offsets market volatility in other asset classes.
23. Lasting money: 6,000 year history as the ultimate store of value.
24. Portable wealth: In an emergency gold is the most portable wealth.
Today gold offers unparalleled safety, privacy and profit potential -- just as Swiss America has said for over thirty years. Now that you have a clearer picture of why so many experts are saying that gold’s future is so bright, I would suggest contacting your Swiss America representative to discuss how to best position your portfolio and retirement funds to seize this golden opportunity today!
DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of Swiss America. Past performance of any investment is no guarantee of future performance. All investments have risk.