Gold Surges, Hits New All Time High Of $1,437 After Precious Metals Talked Up During PDAC Conference

Tyler Durden's picture

As the world continues to burn, gold hits a new all time high of $1,437 as silver is en route to pass $36. Whatever shorts did not cover on Friday night are strongly urged to postpone their "market top" speculation until another day. Elsewhere Bernanke is still confused by what the relentless march to daily all time highs in gold means...

Reuters has some additional reasons why gold may be poised for much more upside:

Gold should push higher from its near-record levels due to its appeal as a safe haven, while iron ore should regain its upward momentum on the back of red-hot industrial demand from Asia, forecasters told the world's largest mining conference on Sunday.

Copper, an economic bellwether due to its industrial versatility, should be well supported at its current lofty levels but may have trouble pushing significantly higher as mine production races to catch up to demand growth, they said.

Addressing the Prospectors and Developers (PDAC) conference in Toronto, forecaster Philip Klapwijk said he saw a "stronger case for investment in precious metals as a safe haven" as demand for base metals declines due to slowing global growth and political turmoil.

Klapwijk, chairman of metals consultancy GFMS, also said he expected global GDP growth to slow slightly this year as compared with last year.

Prices for gold and silver have risen sharply since the outbreak of violence in the Middle East and North Africa earlier this year as buyers turned to precious metals as a haven from risk.

Gold is holding within $10 of the record above $1,440 an ounce it set on Wednesday, while silver extended 31-year highs above $35.40 an ounce on Friday.

JPMorgan analyst Michael Jansen told a room packed to overflowing with more than 500 delegates -- from corporate chief executives to geologists to fund managers -- that he expects gold prices to average $1,465 an ounce this year.

His year-end target for gold is $1,500, he said, adding the gold production outlook was strong going forward.

"We think mine supply is easily on track to grow 3 to 4 percent year on year," he said."

His forecast is slightly more subdued other predictions, such as by Barclays Capital, which said in January it expects the metal to average $1,495 an ounce this year, and range as high as $1,620 an ounce.

GFMS said in a January quarterly forecast that gold may top $1,600 an ounce by the end of 2011.

Klapwijk said gold and other precious metals will also get some impetus as investors exit other traditional safe havens.

"We expect the sovereign debt crisis will not be confined to Europe and it will eventually spread to the U.S. and Japan ... It seems to be inconceivable that the U.S will be able to continue on its current path and maintain its 'AAA' rating," Klapwijk added.

More than 20,000 people are in Toronto this week for the annual PDAC conference. Attendance grows every year at the event, a barometer of mining investment appetite. This year it has also attracted a handful of top government ministers from important mining jurisdictions.

 As presenters rolled out their outlook from everything from gold to iron ore, and uranium to potash, there was one key word was in almost every presentation -- China.

Demand from the world's most populous country will help underpin demand for iron ore, the main steelmaking ingredient, said Phil Newman, chief operating officer of consultancy group CRU.

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asdasmos's picture

Peter Schiff speaks on deficits, money printing, commodities rising.... emphasis on the analysis.  (Mar 4, 2011)

SWRichmond's picture

Roubini - "Weather is the last refuge of scoundrels."

Oh regional Indian's picture

Hmmmmm.... that is pretty deep SWR. Or is it? Care to elaborate relevance etc.? Seriously.



MsCreant's picture

Bad econ stats blamed on weather.

SWRichmond's picture

correct!  ORI, listen to the Schiff radio piece.

Oh regional Indian's picture

Ah. Thanks MsC and SW below (or is it above, never know how cmments show up here).


bankrupt JPM buy silver's picture

does anyone have any clue as to how many $35 SLV calls Blythe is going to have to cover write in the morning?  Holy Fuck, I actually feel bad...

Cognitive Dissonance's picture

More than a few and less than a trillion. That range should cover all possibilities.

Poor Blythe. Now she knows what it feels like to be set upon by an hundred thousand strong army when all you have for defense is a 10 foot wide moat and a wooden door to protect your castle.

OK, who has the torches and lighter fluid? Let's burn this place down and go home.

Cleanclog's picture

1/20/61 JFK quote, "If a free society cannot help the many who are poor, it cannot save the few who are rich."

50+ years later, this quote could help inflame the poor masses who decide to go after the few rich biatches.

TireBite's picture

My 401(k) is being cashed out this week to purchase physical silver. That's my lighter fluid.

Idiot Savant's picture

Since you're late to the party, I suggest you wait and see what BB will do at the end of June. You're picking a dangerous time to push.  


Michael's picture

Bernanke will keep printing money out of thin air no matter what. The second Big Ben stops printing, the whole system collapses instantaneously.

It will never again, with the old money, be a bad time to buy silver. You can stop buying silver and gold when the new script is issued and backed by Fort Knox gold. 

agNau's picture

I totally agree. Silver is my FX account. Move to the stronger currency. Continue to convert.

Oh regional Indian's picture

Serious offer. Dollar diving, rupee gaining.

If any smallish/medium investors want to hold some Silver/Au here in India, feel free to get in touch. Easily arranged. Not a big business or anything. Safe storage costs are minimal compared to anything in the US. Plus, in a Gone Wild global scenario, India is a "safer" bet, all around. Much less accountability.


dark pools of soros's picture

exactly - if you got too much gains then sink it into anything else real to spread yourself out but GET OUT OF DOLLARS

TireBite's picture

I'm good with it. 28 years old, I've got a lifetime of future earnings to cover any potential loss from this. Personal as well as profit driven decision.

Cognitive Dissonance's picture

He/she doesn't need to wait until June. BB must signal to the markets within a month at the most what his intentions are regarding the end of QE 2 and if there will be QE 3 or the markets will assume the worst and sell off.

SWRichmond's picture

Men singing in female voices about emotions?  No thanks...

Misstrial's picture


For PM purchases, since you've waited this long, I suggest an entry point during the last week of March due to PM futures expiry or at the expiry of the Euro/Dollar futures in mid-July.


ebworthen's picture

I think you have a good point.

The central banks are itching to punish PM's and force money into equities.

I would not put it past Ben and the boys to push up rates June by a 1/2 point, then another 1/2 point in October, maybe even a point at a time.

Would kill the housing market but would dampen commodities and lift the markets more.

QE3 with some rate hikes; more free money to the banks and Treasury and stick-save stock purchases but induce inflation and proclaim it is to "give the savers an incentive".


CrazyCooter's picture

I did this. I had to take a *loan* though. Pissed me off. I got a safe deposit box at an area bank after going through and finding a good 1B+ bank that was in good shape. Not all banks are run by fools, so there are some really good balance sheets out there.

NOTE: that site limits traffic to 100 pages by IP I think, so be thoughtful. It is easy enough to borrow a network connect at a friends though, since regular folks probably don't use their site. :-)


ebworthen's picture


You might consider buying in weekly or daily in small amounts to prevent setting off the IRS or other "radar" and just in case prices drop on some profit taking or FED/Central Bank jiggering of PM prices.

urrterrible's picture

Schiff bitchez!  I think Peter eats Gold for breakfast! ;)  I like the guy.

Idiot Savant's picture

A couple of months ago, you predicted 1600+ gold by 6/30. Are you sticking with this call?

dryam's picture

The Fed will very aggressively suppress the price of gold over the next year, so gold will rise very slowly.  Doubt 1600 will be reached by this summer, but silver is a very different story.  The Fed doesn't have any physical silver supplies to keep the prices down.  Silver will probably hit $50 by July, and possibly $100 by the end of the year.

eigenvalue's picture

I hope so. But Fort Knox is said to be empty already. I don't think the US has enough ammo now like in the past. $50 silver by July and $100 by the end of the year would be fantastic but I really doubt it would be reached.:)

agNau's picture

The middle east on fire, and totally unpredictable. BB cannot take his foot off the accelerator for a second or everything falls apart instantly. Silver will hit $40 by April. Silver is the key to unlocking their grip on our lives. Without control of silver price, the deception ends. The curtain will be drawn back and the truth revealed. With out the ability to con the masses with paper, the whole debt based system comes crashing down. Massive credit cycle unwinding.

Turd Ferguson's picture

Actually, it was $1600 by 6/10/10.

Gold was at 1320 when I made that prediction. Why would I change my mind now?

Snidley Whipsnae's picture

Schiff blew Jacob Geiger out of his shoes!

Thanks for the link

The They's picture

Please slow down! My nose is bleeding!

eigenvalue's picture

Get a container for the blood and then sell the blood. You can use the money for more gold and silver. :)

Math Man's picture

Now ZH readers are taking forecasts from JP Morgan Analysts.... Priceless.

tmosley's picture

Whatever you say, loser contrarian boy.

Cognitive Dissonance's picture


You know this is an honest to God ZH Gold thread when Meth Man shows up. He/she/it provides the stamp of credibility.

akak's picture

You know this is an honest to God ZH Gold thread when Meth Man shows up. 

Oh God, too funny!

Yes, like a moth(man) to the golden flame, he simply cannot resist the urge to have his paper wings singed yet again.

barkingbill's picture

i came looking for your sorry ass which was calling the "blow-off" top last week. go buy some microsoft you loser. 

Snidley Whipsnae's picture

Math Man... A stopped clock displays the correct time twice a day. You, on the other hand, are never correct.

Perhaps you should stop digging that hole you are in... if you want to get out.

Does your compensation for trolling off set the humiliation that you are enduring? I heard a rumor that paid trolls often turn to substance abuse... the only out for their ego.

dryam's picture

Anyone want to make any guesses on what rumored story is going to be floated Monday morning to try to take down silver prices?

JuicyTheAnimal's picture

"Goatdaffy abandoned supporters fighting rebels Near Tripoli and photographed shopping for Rocca wear in L.A."

Trifecta Man's picture

Fed raises interest rates 1%.

JuicyTheAnimal's picture

Smoke starts coming out of Bernanke's ears.  His eyes start blinking rapidly.  He peels back is face and underneath is an ATM machine.  It is clearly overheating.  It bursts into flames and ends up a pile of smoking wires and melted plastic.  Jaimie Demon weeps on his knees besides the pile of smoldering rubbish.  

ebworthen's picture

"Huge silver reserves of Paul Revere as well as Nazi's plunder found buried under the nation's Capitol."

...or a FED rate hike...