Gold ‘Will Go To 3,000 Dollars Per Ounce’ - Rosenberg

Tyler Durden's picture

From GoldCore

Gold ‘Will Go To 3,000 Dollars Per Ounce’ - Rosenberg

Gold’s London AM fix this morning was USD 1,580.75, EUR 1,221.69 and GBP 980.98 per ounce.

Yesterday's AM fix was USD 1,590.00, EUR 1,228.37, and GBP 987.39 per ounce.

Gold rose $3.00 or 0.18% in New York yesterday and closed at $1,594.00/oz. Gold ticked lower in Asia and in Europe and breached yesterday’s intraday low of $1,580/oz.

Cross Currency Table – (Bloomberg)

A close below $1,580/oz could see gold test support at $1,523/oz and $1,533/oz – the lows in December and September 2011 respectively.

Gold fell after shares in Asia were hit by JPMorgan's massive $2 billion loss, political turmoil in the euro zone and also by weak economic data from China. The JP Morgan loss may be higher than $2 billion and could lead to sharper sell offs in markets which could lead to further gold weakness.

However, the JP Morgan loss is gold positive as it shows how little reform there has been of Wall Street and the global financial system which continues to resemble a casino. It also shows that systemic risk remains.

Gold tracked equities lower despite the JP Morgan loss, deepening worries about Europe's debt crisis, Chinese economy concerns and their impact on global economic growth.

Safe haven gold is again showing short term correlation with risk assets, with sell offs seen across risk assets such as equities, industrial metals and oil this week. It seems likely that some more speculative players are again selling gold on the COMEX to cover losses suffered in other markets.

Gold is set to fall by more than 3% this week, the deepest drop since early March, however there are technical and fundamental factors that suggest we may be near an intermediate low.

There has been far less selling of physical bullion this week and indeed a small degree of buying the dip.

In the physical market, weaker prices led to buying from Thailand, Indonesia and also main consumer India. Reuters reports that premiums for gold bars in Singapore edged up to $1.10 to spot London prices from $1.0 quoted on Thursday.

While gold prices have had 11 consecutive years of price gains one would not know it from the lack of popular media coverage (and often unbalanced and uninformed), and lack of participation on behalf of the western public.

Gold in Euros – Daily (1 Year)

However gold is set for a 12th consecutive year of gains as investor demand is likely to be spurred by unfolding eurozone sovereign debt crisis, according to the World Gold Council (WGC).

"We believe this will be the 12th year of a bull run by the end of this year," Marcus Grubb, managing director for investment at the industry funded WGC, told a news briefing.

Gold ‘Will Go To $3,000/oz’ – David Rosenberg

Highly respected economist and strategist David Rosenberg has told that Financial Times in a video interview (see below) that gold “will go to $3,000 per ounce before this cycle is over.”

Markets are repeating the downturns of 2010 and 2011 and it is time to search for safety, David Rosenberg of Gluskin Sheff tells James Mackintosh, the FT Investment Editor.

Rosenberg sees a “very good opportunity in gold” as it has corrected and seems to be “off the radar screen right now”.

He sees gold as a currency and says the best way to value gold is in terms of money supply and “currency in circulation.”

As the “volume of dollars is going up as we get more quantitative easing” he sees gold at $3,000 per ounce.

Mackintosh says that Rosenberg’s view is a “pretty bearish view”.

To which Rosenberg responds that it is “bullish view on gold and gold mining stocks.” Mackintosh says that it is “bearish on everything else”.

Rosenberg  says that it is not about being “bullish or bearish,” it is about “stating how you view the world” and he warns that the major central banks are all going to print more money and keep real interest rates negative “as far as the eye can see.”

This is “critical” as one of the key determinants of the gold price are real short term interest rates.

The longer they stay negative “the longer the bull market in gold is going to be.”

Rosenberg sums up that “this is not about being bullish or bearish, it is about how do we make money for our clients.”

The interesting interview can be watched here.


(Bloomberg) -- Palladium Shortage Forecast to Run Through 2016, UBS Says

Palladium supply will lag behind demand for at least through 2016, with the shortage estimated at 714,000 ounces this year, UBS AG said.

Platinum will have a surplus of 143,000 ounces this year, Ben Davis, an analyst at the bank in London, said in a report today, citing the bank's research from April. The platinum price forecast was raised to $1,700 an ounce for this year from $1,675 an ounce, he said, citing the April report.

Platinum and related metals will benefit in the second quarter from signs of growth in the U.S. and expansion in emerging economies, he said. The palladium price forecast was raised to $760 an ounce from $725 an ounce for this year, according to the report from April.

Gold in GBP – Daily (1 Year)

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Gold Bull Run Set For 12th ConsecutiveYear - WGC

PRECIOUS - Gold heads for worst weekly fall since March - Reuters

Gold Bulls Weakest in Month as Investors Buy Dollar - Bloomberg

China’s Gold Demand Growth Seen Stagnating as Price Drops - Bloomberg

Gold rises amid bargain hunting - Sydney Morning Herald


Jim Grant: "The Gold Move Is Not Over" - CNBC

Is JPM Staring At Another $3 Billion Loss? - Zero Hedge

Oil, Gold Take Hits For Their Own Good - MarketWatch

Gold's Setback 'Barely Registers' In Long View - King World News

Marc Faber Sees A 1987-Like Crash Approaching - Bloomberg

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Sircornflakes's picture

Never mind that the cycle has no time frame attached.

Rusticus's picture

Grand supercycle  [live long and prosper]

Pinto Currency's picture



It's pretty obvious where gold is headed.

Where was Rosenberg 5 - 10 years ago?

Everyone is just walking around the wreckage now and waiting for the gas tank to blow.

And if bonds aren't in a bubble, why is gold going to take off?


With respect to the interviewer Mackintosh, I've never understood why interviewers think that telling others that they have a depressing view makes them look clever.

CIABS's picture

$3000.  Wow.  Almost a double.  Gosh.  A double!  (Very nearly.)

HedgeOn's picture

he was saying the same thing about gold 4 years ago

Xkwisetly Paneful's picture

THank the heavens.

I woke up this AM unbelievably insecure about my metals position.

Good thing I can come here and count on pump gold from someone who is already fully invested.

Went to Chinatown to get some raw eels to fry up for lunch,

the chinaman says-need so mejal? I said WTF? Guy says need so mejal? I look at him very quizically thinking maybe some kind of eel I never heard of, then he swings open his jacket and says loudly, need so mehal? Showing off an array of gold and silver.

Wrong as the day is long.


Zero Govt's picture

Gold going to $3,000, $5,000 or even $10,000 is presented as a get-rich opportunity (investment?) when it's nothing of the sort... it simply means Fiat will be worthless, not that PM's will be your dream of being a millionaire fulfilled

Gold could be worth $50,000 per Ounce but it'll be an uber-brief moment (days?) as Fiat goes up in flames 

Sure Gold will hold value but after one Fiat goes down and another (Rothchild Ponzi) is resurrected you'll be left with a stack of Gold to sell ...probably into a buyers market!

Pinto Currency's picture



Cass, you can do better than that!

DosZap's picture

Markets are repeating the downturns of 2010 and 2011 and it is time to search for safety, David Rosenberg of Gluskin Sheff tells James Mackintosh, the FT Investment Editor.

He damn sure is right on that score.

dundermifflin's picture

If jpm is tanking, then why is silver not going up. the conspericy theory was that jpm was keeping silver down

DogSlime's picture

I thought it was all the paper ETF stuff that was keeping PMs down?  Nothing like being able to "print" Silver if you want to manipulate the price, yes?

economics9698's picture

Dunder, deleveraging, deflation, print, inflation, peak, deleveraging, deflation, print, inflation, peak, deleveraging, deflation, repeat as necessary as long as people still play the game. 

The end game will be inflation or deflation, war, permanent rat blood status aka austerity.  Gold and silver may end up deflated but history shows central banks go out with a bang not a whimper.

Your silver and gold will be worth what it is today no matter what the central bank does.

twotraps's picture

...economics9698, agree, well said.  Don't want to get into inflation or deflation or possible gold standard or even some approx value of gold down the road.  If I understand you correctly, you get into gold cause its Not paper, and as long as they manipulate the paper you are risk.  I accept the risk with gold but on balance feel that is better in the end in that I can trade it back into other things at my convenience.  I have read everything from 3k an ounce to 30k an ounce if there is a gold standard but I cannot see that happenning.  Like farmland, you have mkt risk, but at the end of the day, even with some bank holiday-re-issue of currency, at a minimum you are not left to twist with the rest waiting on the fucking central bank.  Have a good weekend.

CPL's picture

You have it backwards actually.


The paper wasn't worth anything to begin with, the paper is only a reflection of what it is tied to.


With all that paper tied back to nothing but debt, unemployment...well, everyone will see soon enough. 


Here comes dow 25k and S&P 3500.  BOOM!  Btw those of you thinking that this is good thing.  Good luck selling your stocks.  Volume sucks and all I see is a board full of people trying to sell and no buyers except algo's.


twotraps's picture

you're right, the paper really isn't worth anything, so I'm suggesting not crying about what happened yesterday or at the creation of the Fed in 1913....and take some action to get some assets not denominated in dollars.  I have no illusion about beating the system....rules changes galore will prevent that, but that doesn't mean I have to take a full beating like everyone else in the process.  If they are stupid enough  to have a bank holiday and revalue the dollar 40% lower, then I'll sell some gold and get new funny money, wtf?

Xkwisetly Paneful's picture

Sick thing is you actually teach kids.

Fighting the fed is a losing strategy, it has been a losing strategy since the creation of the FED.

But I get it, fanatics are fanatics for a reason.

blunderdog's picture

Investing in gold is *cooperating* with the Fed.  They want to devalue the dollar.

junkyardjack's picture

They still manage to "manipulate" the silver market as their company fails...

sessinpo's picture

It's still profitable for them. Consider their derivatives position. They held it until it blew up in their face.

Lost Wages's picture

JPM lost some money, but they haven't gone out of business (yet). So they are going to keep doing successful things, like gaming silver, to make up for dead whales.

youngman's picture

If Jamie is going to tighten up the ship...they should be closing out some of their shorting trades....clean up the book...more transparent and simple...

JOYFUL's picture

...If jpm is tanking, then why is silver not going up. the conspericy theory was that jpm was keeping silver down...


Does yur wife call yu "Rush" Limpbough?

tmosley's picture

*Implying that they used their stock price to keep silver down.

*Implying that JPM has already declared bankruptcy.


junkyardjack's picture

During this cycle it will also hit $1,000

prole's picture

6 Gold Longs did not appreciate your comment sir. I also don't ..... DAMN YOU!!

But you just could be right.  Gold went from 800 back to 250 before, it could easily do something similar .. I hope it doesn't, I'll be br if it does.....

MichaelNY's picture

Of course it will go to $3,000.

The question is: "When?"

economics9698's picture

You will see serious movement by October 2012.

grey7beard's picture

The more I see these pie in the sky forcasts, the more I wish I had some nice utilities.  Goldman Sachs second "gold to $1850 this year" proclamation made the hair on the back of my neck stand up, both of them.

Gold will continue to be savaged as it's the reserve currency competition for Bernanko Bucks.  If Iran wants to trade oil for gold, then gold will be slaughtered.



Silver Bully's picture

You are correct that gold is:

-competition to the dollar, and vice versa, as a percieved safe haven.

-gold will be 'managed', and if Iran trades oil for gold, it will be 'managed' lower in the short term.

However, it won't stay that way. The physical market will not let them keep the price down forever. All the manipulators can do is try to manage the gold's ascent, otherwise they would be completely flattened by it.

flyingpigg's picture

If Iran wants to trade oil for gold, then gold will be slaughtered.

What a nonsense. Do you expect the Fed to print gold? If gold goes down in dollar terms, the Iranians will just ask more gold for their oil. So even if gold "would be slaugthered", it would not hurt the Iranians. Thumbs down for you greybeard...

BTW, I might do some uncivilized buying if it would happen and I'm pretty sure that I won't be the only one.

Levadiakos's picture

Roseberg hasn't been right in 4 years. The only reason this calll might be different is that there is no time gme target given. gold $ May 2312. BTW I'm calling for DOW 112,000

LULZBank's picture

If JollyPants Moron goes bust, how will we get our cheap PMs???

Blythe, please dont go!!!

P.S. I love you!

Sudden Debt's picture

50 dollar gold ounces and 1 dollar silver ounces...

wet dreams for now...


LULZBank's picture

Just dont wear your ball crunching nylon boxers when you get your wet dreams.

Containment is not always helpful.

Dr. No's picture

If JollyPants Moron goes bust


lol.  goes bust.  good one.  Did you know they own the printing press and approved the application of the guy running it?

Sudden Debt's picture

I don't really take this guy serious. Yes it wil go above 3000 and even way higher but is it before or after the elections...

I don't even think this year.

Next year... very well possible.


scatterbrains's picture

Step back and look at a longer term view and it looks like the Fed could knock prices back in the pm's a bit more before the next stage of printing begins...or so I'm thinking.

eddiebe's picture

Along with everything else the banksters hold a lot of gold. They know better than the masses the worth or worthlessness of fiat and government IOU's, after all it is their notes that the governments are borrowing. When it suits the banksters they will and do revalue gold overtly and/or covertly. If you were one of them, wouldnt you try to get more of it by shaking the tree periodically?  Do yourself a favor and trade some of that paper if you have any left for the only real money there is, even though I'm sure Benny frowns on that.

punxsutawney phil's picture

Wow gold longs hurting and it is not even down that much.  This could go to 1400 and it is still in a crazy uptrend.  Folks need to calm down, and ride it down a few hundred points.  Why does everyone think things move in straight lines. 

Chief_Illiniwek's picture

...because I saw a video on the internet that said they would.

Non-overlappingMagicCereal's picture

ZeroHedge - where 'highly respected economist' is a mark of shame.......unless you agree with us, don't have a PhD, and work for an investment firm.

orangegeek's picture

If gold goes up, the USD will likely decline.  If the USD declines, markets will move upward, likely beyond the 2007 highs.

Anything is possible.


More probable to see gold decline - - probably down to $1300

sessinpo's picture

Totally opposite of your thought using the same technicals/fundementals.

DosZap's picture

Totally opposite of your thought using the same technicals/fundementals


Check the date....................

By Nathan Slaughter

August 17, 2011


Zero Govt's picture

Nathans promises/predictions about Gold miners soaring got slaughtered

..much like the shills at King World News though Jim Sinclair has yet to squeek a peep about their (and his) tragic market calls on the miners

Mr Gold (Mr Tanzanian Royalty) talking his book while promoting himself as every Gold bugs bestest friend

Red Heeler's picture

Now is when we buy.

Al Gorerhythm's picture

Patience Fido. Now get behind!

Red Heeler's picture

RedHeeler, exercising patience since '02.

My little lady gets behind.

Bastiat009's picture

Mr Rosenberg must have gold for sale and can't get out fast enough.

Every single piece of news has been bullish for gold over the past few days and yet it's crashed ... gold is definitely not safe.

You cannot say that gold will protect you in times of trouble when the price of gold crashes every time a tiny crisis emerges.