Spot Gold Surges, UniCredit Sets New 2012 Price Target Of $1,600

Tyler Durden's picture

Gold is rapidly approaching its all time high intraday high (and someone please inform Dennis Gartman that Gold in euro terms is close to its record again), as spot has surged $12 in a few minutes and is now near $1,260 (record intraday was $1,265 set back in June). In addition to the CHF and the JPY, gold is once again the safety trade. This comes hot on the heels of the recent report issued by UniCredit SpA’s Jochen Hitzfeld, the
most accurate gold forecaster tracked by Bloomberg in the last
three quarters, in which the analyst raised his estimate for the metal’s average
price next year by 12 percent to $1,400 an ounce, and for 2012 to $1,600. As the full report below indicates, the surge will be helped by concern about the effect of government economic-
stimulus plans and speculation about increased demand in China,
the world’s second-largest buyer after India. Hitzfeld also is so daring as to think what will happen when actual demand, and not central bank interventions, sets the price of gold: "gold supply will increasingly be determined by investors. Twenty years from now, investors will probably find it hard to imagine that there was once a time when jewelry demand determined one of the world’s most important asset classes. If investors were to switch only 1% of the global market capitalization of equities and bonds into gold, at the current gold price of around USD 1,250 per troy ounce, this would translate into demand of 36,000 tons. According to the US Geological Survey, this is roughly equivalent to the known gold reserves. In reality, however, there will be a mix of gold purchases and increases in gold prices. At a gold price of USD 2,500, only 18,000 tons of gold would be required to reach a share of 1%." But you still can't eat the damn thing!

Full UniCredit report


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Goldenballs's picture

Up,up and away (again).Where,s Johnny Bravo ?

Cognitive Dissonance's picture

Lurking under any number of aliases.

mrgneiss's picture

JB reacting to today's rise in the gold price: "It's just a fib retracement to the _ _ . _ _ % levels from the July lows"

The beauty of this argument is that many numbers can be inputted into the blanks!

However, as we all know looking at the big picture this has nothing do to with gold, its just fiat that is tanking.

Quintus's picture

He'll be back.  If gold went to $1,000,000/oz he'll be here warning us that it's about to crash to only $600,000 "Any day now".

They're very persistent as a breed, those gold bashers.

Cognitive Dissonance's picture

They're very persistent as a breed, those gold bashers.

I wouldn't call him that. Maybe a genetic mutation caused by stray comic rays or a DARPA science experiment gone horribly wrong.

Just kidding JB, we love a stomach virus :>)

Almost Solvent's picture

They're very persistent as a breed, those gold lovers.

Quintus's picture

That is true, but we keep ourselves to ourselves, and do not, as a rule, spend our time on Equity and Bond related blogs telling everyone there that they are idiots and are going to lose all their money 'Any day now'.

This behavioral trait is unique to gold bashers.

fiftybagger's picture



Equity and Bond investors are idiots and are going to lose all their money 'Any day now'

Quintus's picture

This is, of course, self-evident, but for the full 'johnny Bravo' experience, it's no good posting that here.  

You need to find a blog where Equity or Bond investors hang out and make 100 posts a day explaining to the poor dumb b*****ds why they are about to lose their money.

If, perchance, their investments actually move higher, disappear for a couple of days, revise higher your target for how low the crash will take their investment, then continue posting.

You may find that your own portfolio returns drop off somewhat, as you will be spending all your time reading and posting about something you have no interest in or exposure to, but it's a price worth paying to enlighten those misguided souls.  A form of charitable donation, you might almost say.

RockyRacoon's picture

Listen, all you insensitive bastards!  Johnny is here to help his fellow man.  He neglects his studies and his investments for our own good.  Hardly an activity that deserves the vitriol.  Now if we could just get him to go away...

knukles's picture

Thank God for that when all along I'd worried about it being angels playing HAARPs.  I gotta think this through. 

Rick64's picture

Where,s Johnny Bravo ?

School started again.  

Cognitive Dissonance's picture

Exactly. Ole JB was blogging out of his parents home (basement I suspect) which he let slip once or twice. The wonderful thing about youth, and I was there at one time as were we all, is that we're invincible and always right, until were wrong. But the hormones assure a short memory and an unbridled passion to tell the world of our brilliance.

Many of us survived our youth. Others are still within it's grasp. Still us are taking daily injections and are reliving the glory days hopped up on testosterone drugs.

GlassHammer's picture

See spot

See spot run

Run spot run

Cognitive Dissonance's picture

Twenty years from now, investors will probably find it hard to imagine that there was once a time when jewelry demand determined one of the world’s most important asset classes.

Let me fix this.

Twenty years from now, investors will probably find it hard to imagine that there was once a time when false demand and supply impulses propagated by the Fed, other central banks and their lackeys, such as JPM, Goldman etc determined the artificial price of one of the world’s most important asset classes.

Better. Anyone else wanna try? :>)

bigdumbnugly's picture

i'll try.

20 years from now most investors probably still won't have a clue either way.

Cognitive Dissonance's picture


I surrender to the mighty bigdumbnugly. :>)

Caviar Emptor's picture

Twenty years from now, the "golden class"will wonder what the "paper class" were thinking by not owning gold at the start of the "golden age". 

TGR's picture

That got me thinking; people grow into their 'golden years', get a golden handshake, have golden anniversaries, get 'gold' medals for first place in competitions, say things like "as good as gold" etc - there's plenty of everyday reminders as to the status of gold embellished somewhere within our culture.

yet there's still people who bash it or eschew it for paper illusions.


Strange world.

RockyRacoon's picture

And the king of them all:  The "gold standard of...".  It's a commonly used term to describe the best of the best.  For damn good reason.  ZH is the gold standard of financial sites.

Cognitive Dissonance's picture

I'll never forget about a year ago some brillant mind (aka CNBC "guest host") was beating up on Gold while pushing technology. The kicker was when he said something along the lines of "The Gold standard for tech stocks is.....".

Suddenly my morning coffee went down the wrong pipe and I was gasping for air while at the same time I was trying to laugh. :>)

Temporalist's picture

I remember that as well they were bashing gold and insinuating it was a barbarous relic, the old song and dance.  It was only this year maybe a few months ago or so.  I can try to find it it was shared on ZH.

tmosley's picture

For some kids, the only experience they have with gold is golden showers.  This must be a contributing factor to their extreme distaste for gold.

knukles's picture


Oh my, that's just wrong.  I hope it's not Dr. Freud talking.

JLee2027's picture

Probably a new high today and silver at $20. Wow.

fuu's picture

Exempted prop desks everywhere trying hard today.

taraxias's picture

But.....but.....but Johnny Bravo said it was going to $900


It looks like Alf has got more brains than Robo. Soft porn anyone?

Hephasteus's picture

I can fap to that. Or fap turbo to that.

Thorlyx's picture

Gold, bitchez!

qussl3's picture

Anyone get the feeling that TPTB are playing the same bagholder game with retail but instead of equities its now paper gold?

LoneStarHog's picture

Hey!  Put Karl Denninger on that information list with Dennis Gartman.

Sherman McCoy's picture

This trade is beginning to seem quite herdish. Is Soros, Paulson, Tudor, Ackman, et al ad nauseum, ad infinitum going to give you the heads up when they get out?

p.s. I was long until i looked at the px in euros and got nose bleed.

Quintus's picture

If you can call the (probably) 1% of investors who have any exposure to gold at all a 'Herd'.

tmosley's picture

Black sheep herd.

Once you go black...

Pladizow's picture

If most well educated people bought life insurance, would that too be bullish?

Gold is not being purchased by the informed as an investment but as insurance.

You dont buy gold to make money, you buy gold because you have money.

Monetary Lapse of Reason's picture


"you buy gold because you have money"


So simply stated... and so true.  The only thing I would add is, "you buy Gold because you have money", and you are prescient enough to realize that Fiat, and other Fiat-backed forms of investment, are not reliable stores of value in the current environment.       

Anton LaVey's picture

You could also say: "You buy Gold because you have wealth, and you want insurance that this wealth is not going to evaporate tomorrow".

Money and wealth are not the same. Money is a way to count wealth, to ascertain its value, so to speak. Money comes and go, but wealth should remain.

This is exactly the reasoning I had a few years ago, when I looked around at the crisis and realized I needed something serious to protect whatever little wealth I had from the economic disaster I saw unfolding.

I started buying Gold and Silver several years ago and I have had no reason to regret that decision yet.

Pladizow's picture

Suspicion toward a currency, once awakend, develops insomnia. - James Dines.

RockyRacoon's picture

Gold is a magnificent soporific.

nuinut's picture

Gold is crystalized wealth, removed from the system entirely by its owner, and ready to be deployed back into said system at the discretion of its owner.

Should the system crash and massively deflate in gold while the gold owner holds their wealth outside the system, well good for them, eh?

This is golds function, to hold wealth securely outside the system, and in the performance of this function it finds its value. Should the system have a massive meltdown, then golds value will have been demonstrated to be exceptionally high, no?

RockyRacoon's picture

...Soros, Paulson, Tudor, Ackman, et al

That's not a "herd".  That's a who's-who of investors.  And, no, they will not let you know when to exit.  It wouldn't matter because in a bubble nobody would listen.

ArrestBobRubin's picture

The Golden Scythe is hunting down Blythe. You can run, but you can't hide.

mrgneiss's picture

In her case its actually a silver scythe.

Amsterdammer's picture

I'm no member of the GATA, but another variable

to incorporate in this analysis is that world central banks hold

bank gold assets amount to 32,000 metric tons.

The rumourmill is back: Gold and Silver Trading biggest

scam in history


What_Me_Worry's picture

Paper gold and silver trading is one of the biggest financial scams in history.  Truly a ponzi scam and the best part is, (almost)everyone already knows it and goes on trading it anyways.

Everyone thinks they are the smartest guy in the room.

Anton LaVey's picture

To which the standard answer would be: watch the show when everyone starts running for the exit... at the same time

This will make the scenes near the Titanic life boats positively tame & polite by comparison.

apberusdisvet's picture

It's coming, sooner than you think.  Once silver pops $20 and stays there for a few days, it will unleash a Tsunami.  I wonder if Ben and Timmie can breathe under water?