Gold is poised for a dramatic surge and could blast through $2,000 an ounce by the end of next year as central banks flood the world’s monetary system with liquidity, according to an internal client note from the US bank Citigroup. The bank said the damage caused by the financial excesses of the last quarter century was forcing the world’s authorities to take steps that had never been 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.”They are throwing the kitchen sink at this,” said Tom Fitzpatrick, the bank’s chief technical strategist. “The world is not going back to normal after the magnitude of what they have done. When the dust settles this will either work, and the money they have pushed into the system will feed though into an inflation shock. “Or it will not work because too much damage has already been done, and we will see continued financial deterioration, causing further economic deterioration, with the risk of a feedback loop. We don’t think this is the more likely outcome, but as each week and month passes, there is a growing danger of vicious circle as confidence erodes,” he said.
We are already seeing countries on the periphery of Europe under severe stress. Some leaders are now at record levels of unpopularity. There is a risk of domestic unrest, starting with strikes because people are feeling disenfranchised.” Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. “If true, this is a very material change,” he said. Citigroup said the blast-off was likely to occur within two years, and possibly as soon as 2009. Gold was trading yesterday at $812 an ounce. It is well off its all-time peak of $1,030 in February but has held up much better than other commodities over the last few months – reverting to is historical role as a safe-haven store of value and a de facto currency.
Gold has tripled in value over the last seven years, vastly outperforming Wall Street and European bourses.
Sounds like a good way to hedge your bets…..if you can find it.
I noticed the girl in the photo is oriental. Possibly Chinese? So is the gold pictured from China? Are they going to dump Chinese gold on the US, along with everything else they’ve already dumped on the US? Better check to see that gold isn’t radioactive, or lead with gold plating. The Chinese have been big on recycling their waste lead back to the US.
/random errata
ok… its simple…they want your money.
1. the business cycle is fiction. it’s manipulated.
-gold and silver prices have been kept low on purpose so the dollar would not drop to nothing sooner than planned. no doubt they’ve been pumping the market up with bailout money as well to further keep the “illusion” (and USD) going..
2. our Gov, Th Fed, JPMorgan and Goldman-Sachs(GS) are the major players and manipulators-..(the IMF and central banks all over the world are playing there roles as well) -the conflicts of interest of with JPmorgan and esp GS in regards to where many of their ex-ceo’s, chairman etc are now placed and working in many levels of our gov is absurd. -and yet nobody seems to make light or care about this fact..
3. their trying to get you into the paper gold gold market because the Comex gold/silver market is expected to default, (in the minimum, continue to issue extensions and not deliver to non-commercial customers) -possibly starting on Dec 8th when the contracts are due.
4. citigroup (and paulson) have been lying through their teeth. they’re going to need yet another (failed) bailout. there is no way the fed/gov can recover citi from the amount sham otc derivatives
it used to value itself…
..i’m late for an appt. more yacking later.
-s
#22 & 23
Oh really? I bought about 3 ounces of gold when it was $300 an ounce. If it goes up to $2000 an ounce, I’ve made a bit of a profit, don’t you think? I only wish I had bought more.
HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA,
OOOO, weeeee,
HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA,
oh, that is rich, funny too,
My kid bought a bicycle from our neighbor’s yard sale for $1. She rode it for a couple of years then last summer when we had our own yard sale, sold it for $10 Maybe she should have bought a few more bikes.
They must own gold futures and hope this is a way to dig themselves out of the hole they put themselves in.
My prediction is that gold will fall. Not because someone is dumping it, but because people are just waking up to the fact that gold is pretty worthless. It is too heavy and soft to be good coinage. You can’t eat it. To spend / sell it requires an assay test and fine scales. To store large quantities requires guards. It doesn’t earn interest.
But it is shiny.
HA HA HA HA HA HA HA HA HA HA HA HA HA
If it does bubble, what will the electronics industry do?
Why can’t they speculate using tulip bulbs like proper crackpot hoarders?
# 37 Mr. Fusion said, “My prediction is that gold will fall. Not because someone is dumping it, but because people are just waking up to the fact that gold is pretty worthless.”
Yep, just head over to Ft. Knox and while you grab a few bars, explain to guards shooting you that it is “worthless”.
Let us know how it goes.
This has happened before, with Silver..
trying to Corner a Product and get the BEST prices..
Wht has to be understood, is WHY..
What are the USE’s for gold..
If you corner the Gold market, you can FORCE others to pay the price you WANT.
When they talk about gold hitting $2000/oz. they don’t mean that gold will get more valuable. What they mean is that paper currency will get less valuable.
You can’t eat gold. You can only buy and sell it. You could try trading it, but if it comes to the point where you’re trading gold for food, then everything will be too far gone to worry any more.
# 41 chuck said, “When they talk about gold hitting $2000/oz. they don’t mean that gold will get more valuable. What they mean is that paper currency will get less valuable.”
Of course. I don’t see how anyone thinks that by printing RIVERS of money isn’t going to cause monetary inflation.
And the good news is they’ll buy it as scrap for about 2/3 of what the fair market value is at the time!
There is no way you can just use it for money for what it’s worth in theory.
#39, Cow-Paddy, Ignorant Shit Talking Sociopath and Retired Mall Rent-A-Cop,
Yup. Keep talking like that. Nothing to add to the discussion. Sure must be like shit to be you. Since your goldfish dies, does anyone like you?
Gold does have some uses. Being so corrosion resistant it makes very good electrical connectors. Being relatively soft and malleable it can be extensively used in dentistry. Being shiny it does make good jewelry. It also has some photographic and chemical uses.
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