$2,200 Gold Ahead Say Experts
Fifty economists agree gold's future is very bright
By David Bradshaw, Editor RMP
The commodity super-cycle has swept gold prices
to triple since 2001 -- but that's just the kickoff say the experts.
How high will this bull market in "real
money" and commodities drive gold prices over the next 5 to 15 years?
Get ready to be shocked!
Gold prices grew about $100/oz. per year between 2003 and 2006. Gold
was $300 in '03, $400 in '04, $500 in '05, $600 in '06 and $800 in '07.
Savvy investors and gold experts see $1,000 plus gold in 2008!
Recently many analysts have jumped onto the $1,000/oz. plus gold
bandwagon -- most of whom were not considered "gold bugs" in the
past, like Citibank and JP Morgan & Co.
Here's a list of over fifty prominent analysts, authors and gold
experts already on the record forecasting four-digit gold prices to
arrive in the years ahead. Their combined gold price expectation is
$2,200/oz. gold!
Count for yourself the dozens of good reasons for owning gold today,
which these experts suggest will drive gold prices sky high. I've listed
two dozen reasons at the conclusion.
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
PAUL WALKER, Chief
Executive GFMS
"The price of gold is likely to peak at just
over $1,000 per ounce in 2008. Gold is dancing to its own tune and not just
being influenced by a weaker dollar. Walker estimated that investor demand
was 12 percent of total demand for gold in 2007." Reuters, 2-4-08
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
a>, 11-5-07
ROB LUTTS, President, Cabot Money Management
"Gold will hit $850-$870 by the end
of 2007 and $2,000 gold is achieveable
in this move, given the huge demand from ETFs
and soon pensions and insurance companies will be buying
gold as a new alternative asset class." -CNBC, 11-2-07
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
JOHN
HILL and GRAHAM WARK, Citibank analysts
"A'Reflationary
Rescue', in a new cycle of global credit creation and competititive
currency devaluations could take gold to $1,000 an ounce, or higher.
Central banks have been forced to choose between global recession or
sacrificing control of gold, and have chosen the perceived lesser of two
evils." -London Telegraph, 10-1-07.
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
CHRISTOPHER WOOD, Chief strategist, CLSA
"Market
ructions, the sub-prime conflagration and a collapse of the dollar could
send gold prices to more than $3,400 an ounce within the next three years.
This is not a sub-prime crisis. Sub-prime has merely exposed the bigger
scam of structured finance; a scam that is about pretending that bad credit
is good credit." -London Times, 9-19-07
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." -Fina
ncial 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
PHILIP MANDUCA, Managing Director
-- Titanium Capital Ltd.
"Gold is still by far the optimal
choice for most investors to play. It's been successful in '04, '05 and
'06. Gold will be through $1,000 in the next 18 months." -Bloomberg, 11-29-06
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
a>, 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
-- 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 took a hit last week, falling 5.7%. As with other
commodities, gold was perhaps due for a correction and responded to
Bernanke's tougher words. We could see it drift a little lower -- between
$580 and $600. But this downside is paltry compared to the upside potential
for gold. 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
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, Oct. 10, 2005
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." -Howestr
eet.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
a> ... "In truth, the price of gold at $600 is no big deal. In 1980
dollars, it is only $300. If prior highs mean anything, a target of $1700
in today�s dollars is what investors should be thinking about. Investors
should worry less about whether this particular moment is a good or bad
entry point and ponder the implications of sailing through uncharted waters
without a lifeboat." -Tocque
ville.com
MARC FABER, Author -- Tommorrow'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." Marketwat
ch.com
BILL BONNER, Author/Editor -- Daily
Reckoning
"When the price of gold goes over $1,000, the bull
market will be in its bubble phase. The price may go far higher - 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
CRAIG R. SMITH, Author/CEO -- Swiss America
"Gold is clearly headed toward $1,000/oz. and is still a great bargain
near $700/oz! Gold recently jumped over $700, and is overdue for a price
correction -- which is the sure sign of a healthy bull market -- offering
yet another opportunity to buy the dips in this ongoing secular bull
market." -CNB
C Squawk Box
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." -Money Week
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
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." -CNB
C "$1,000 gold debate" 5-9-06
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." -Marketwat
ch.com
JOHN EMBRY, Chief Investment Strategist --
Sprott Asset Management
"Gold will hit at least $800 per ounce
as paper money is going to hell in a handcart. Even a $1,000/oz gold price
may be conservative." -MineWeb.com
a>
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."
Globeandmail
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 as
more geopolitical problems arise." -GoldRush21
ROSS NORMAN, TheBullionDesk.com
"Yes, I do think we will be in the $700s perhaps late in the second
quarter, or perhaps the third quarter of 2006 - the market seems incredibly
robust both in terms of external factors like the correlation with the oil
market that we�re still underperforming against - if the ratio held with
that we�d be at about $1,000 an ounce now. I think it�s gaining
strength from the ETFs and more corporate and pension money coming into the
market on a regular day by day basis - all this conspires to make one
believe that the market has got plenty of strength, that it�s �stronger
for longer� as they say." -Thebulliondes
k.com
ADAM HAMILTON, CPA -- Zeal Intelligence
"If our current gold rally truly unfolds into a Great Gold Rally,
$1000 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 $5000 per ounce. The actual
top of a new gold bubble at the final pinnacle of another Great Gold Rally
could touch $6000+ 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
"While my model indicates gold should be fairly
valued at $900, there's no reason to believe that gold wouldn't
dramatically overshoot that mark. And if 1979 to 1980 is anything to go by,
it 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
The list is growing weekly, email us your favorite
expert quote on $1,000 plus gold and we'll post them in this space.
24 Reasons to Own Gold� NOW!
1. Gold is still by far the optimal choice for most investors
2. Likely ruptures in the stability of the global-money system
3. $625+ gold prices will eventually peak well above $1,000
4. The
most powerful factor affecting gold is monetary inflation
5. 2007
gold supply/demand dynamics: irreversible changes
6. Gold's downside
risk is paltry compared to the upside potential
7. Some insiders see
gold saving the US dollar as reserve currency
8. Central banks buy
gold to diversify reserves away from dollars
9. Portfolios designed
to hedge inflation must be bedrocked in gold
10. Shortest commodity
bull market is 15 yrs, the longest 23 yrs
11. Gold now accepted as
fourth global currency (with $, Eu, Y.)
12. Most bullish of all: the
fact this is still a stealth gold bull market
13. Investors should
worry less about good/bad gold entry points
14. Commodities now an
asset class for the first time in history
15. Gold is coming out of
the closet and the press is taking notice
16. Price corrections are a
sign of a healthy bull market, buy dips
17. If there is any shooting
in Iran, gold/oil will go through the roof
18. Hard currencies (gold)
boom as people notice currencies fall
19. Gold market knows inflation
already here, explaining 2006 surge
20. More and more investors
allocating more resources into gold
21. Gold you hold in your hand:
Numismatic coins or bullion best
22. Gold gaining strength from ETFs,
corporate and pension money
23. A gold bubble 5-7 years out could
launch gold above $5,000/oz.
24. Regardless of what the media says,
gold prices are still cheap