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Goldman Hikes Its 12 Month Gold Price Target From $1,735 To $1,830

Tyler Durden's picture





 

The first of many gold price upgrades is here, as Goldman's David Greely finally catches on to what has been all too obvious to anyone with a frontal lobe: "Gold prices hit a new record high last week, closing at $1,663/toz on August 3. Despite this rally, the rise in gold prices has continued to lag the plunge in US real interest rates, with 10-year TIPS yields trading below 30 bp. With our US economics team lowering their outlook for US economic growth, implying US real rates will remain lower for longer, and with sovereign debt issues in both the United States and Europe intensifying, we are raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, respectively." Next up: everyone else.

Note summary:

Gold prices rise to record high as 10-year US TIPS yields plunge to a record low

 

Gold prices have rallied strongly since the beginning of July, rising 12.2% to a record (nominal) high close of $1,663/toz on August 3. While the rise in gold prices has been sharp, it continues to trail the fall in US real interest rates. In particular, 10-year US TIPS yields plunged from 77 bp to a mere 24 bp over the same period, according to the US Federal Reserve. Consequently, despite this rally to yet another new record (nominal) high, we believe that gold prices will continue to rise as: a) 10-year US TIPS yields are at an historic low; b) a diminished outlook for US economic growth suggests US real rates will remain lower for longer; c) gold prices in inflation-adjusted terms remain well-below their 1980 highs; and d) sovereign debt concerns have intensified in the United States and Europe.

 

Raising our gold price forecasts as the diminished outlook for US economic growth suggests US real interest rates will remain lower for longer

 

We had expected gold prices would continue to rise through the middle of 2012, when we expected rising US economic growth would push real rates higher and gold prices lower. However, with our US economics team now lowering their outlook for US economic growth to 1.7% in 2011 and 2.1% in 2012, we now expect real interest rates will remain lower for longer, and we are now raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, up from our prior forecasts of $1,565/toz, $1,635/toz, and $1,730/toz, respectively. Net, this revision in effect pulls forward the higher prices we expected on a 6 and 12-month horizon – as US economic growth has been slower, and US real interest rates lower, than previously anticipated – and extends the upward trajectory for gold prices through 2012. Further, the recent escalation of sovereign debt concerns suggests that the near-term risk to our new forecast is skewed to the upside, and we continue to recommend long trading positions in gold.

And full note:

 

 


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Sun, 08/07/2011 - 20:50 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Welcome to the recovery:

 

http://www.youtube.com/watch?v=YatFF37gSBo

Sun, 08/07/2011 - 20:55 | Link to Comment New World Chaos
New World Chaos's picture

Blythe Masters (the Master Metal Manipulator) now has a blog, and she's quite full of herself.  She needs to be savaged by filthy trolls:

http://blythemasters.blogspot.com/

Sun, 08/07/2011 - 21:02 | Link to Comment PaperBugsBurn
PaperBugsBurn's picture

 

 

You know, JPMorgan is also recommending long gold. Considering Rothscum and Co. have been amassing gold for hundreds of years, I'd say they've decided to pull the trigger on the recalcitrant politicians in DC. HSBC (you know, the bank founded by Sassoon and Rothscum to finance their opium trade) has been allowed into China's new gold trading hub.

 

All in all, I think Amerika is royally phucked.

Sun, 08/07/2011 - 22:33 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

I checked that link and I was surprized. Her outfit in the first picture is the same with either my mom's tablecloth or her curtains. I am not sure.

Sun, 08/07/2011 - 21:03 | Link to Comment Pure Evil
Pure Evil's picture

She's definitely being ravaged by quite a few filthy trolls.

Sun, 08/07/2011 - 21:06 | Link to Comment The Shootist
The Shootist's picture

As she should be. She's def one of the people I want to see visiting Maddoff.

Sun, 08/07/2011 - 21:23 | Link to Comment PaperBugsBurn
PaperBugsBurn's picture

 

 

My comment on Blythe's site:

 

Blyhte, Blythe, Blythe... so you hang out with Rothscum & Co., huh? Fucking scumnbags.. we'll be coming for you banksters soon, bitches  you hear me?????  we're coming for you fascist scum!!!!!

 

lmfao

Sun, 08/07/2011 - 21:05 | Link to Comment Hearst
Hearst's picture

Blythe will be among the list of those scared for their lives if this is the moment in our history where the world wakes up to physical.  Once the masses turn for Silver and Gold coins and bullion there wont be any stopping it until the fraud of SLV & GLD and all other fractional reserve based precious metal holdings are exposed to the light of day.  

Sun, 08/07/2011 - 22:35 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

ETF's are derivatives. they will eventually blow up in smoke

Sun, 08/07/2011 - 23:13 | Link to Comment HungrySeagull
HungrySeagull's picture

Paper can only be rubbed before it burns.

Now a woman.....

Sun, 08/07/2011 - 21:26 | Link to Comment sunnydays
sunnydays's picture

That is hilarious.  She must be needing to put herself out there for when the whole manipulation of PMs blow up and she looses her job.

Sun, 08/07/2011 - 21:36 | Link to Comment Ray1968
Ray1968's picture

The Empire will stike back with Darth Blythe. They will lose, but they will try to blow everything up in the process.

Metal in your hand..... bank on it.

Sun, 08/07/2011 - 22:05 | Link to Comment DosZap
DosZap's picture

Ray1968,

Like your handle soul brutha.........

yes, you are correct..................................Smoke on the Water.

Wait till a.m., the Vamp will nail this biatch quick............it MUST go above $1,720 before a.m., or they will knock it back to $1,675.

Silver will get creamed as usual...........but they will suck in a few longs first.

Sun, 08/07/2011 - 21:53 | Link to Comment LynRobison
LynRobison's picture

Her blog is amazing in its degree of self-promotion. It is a big, long, self-aggrandizing advertisement for Blythe Masters. In short, it is her resume. 

Sun, 08/07/2011 - 22:16 | Link to Comment New World Chaos
New World Chaos's picture

All the more reason to troll-pile her while she's too busy to babysit her blog.  Let the world see that she has provoked the wrath of the little people.  Her potential employers may give her points for screwing us but she will lose more points for letting us figure it out.  Let's make sure her best career option involves making casts of her vagina with molten 1000-oz COMEX bars.  They would make great table centerpieces.

Sun, 08/07/2011 - 22:17 | Link to Comment erg
erg's picture

Blythe that waspish shrew. Her eyes carious and yellow. That rue-bitten Queen of the Harpies.

Sun, 08/07/2011 - 21:08 | Link to Comment DavosSherman
DavosSherman's picture

$1,830.00 hoocoodanode?

Sun, 08/07/2011 - 21:17 | Link to Comment IQ 145
IQ 145's picture

 I suppose if they keep guessing they'll be right some day.

Sun, 08/07/2011 - 21:25 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

At $1690 they are raising their 3 month outlook to $1645? Give em a loser's ribbon for participation.

Mon, 08/08/2011 - 00:42 | Link to Comment StychoKiller
StychoKiller's picture

The high tonite:  $1701+/Toz.

Sun, 08/07/2011 - 22:09 | Link to Comment adeptish
adeptish's picture

Blythe gives me the horn ...

Sun, 08/07/2011 - 20:50 | Link to Comment nmewn
nmewn's picture

Canaries...coal mines...

Sun, 08/07/2011 - 21:20 | Link to Comment Long-John-Silver
Long-John-Silver's picture

The Canaries died 5-AUG-2011

Sun, 08/07/2011 - 21:33 | Link to Comment nmewn
nmewn's picture

Yeah.

But what sucks will be the rebuilding. If one thinks there is hard feelings now, just wait till some are informed their services are no longer needed...the gravy train is over and they will have to actually do something productive.

Let the rending of clothes & gnashing of teeth commence ;-)

Sun, 08/07/2011 - 20:51 | Link to Comment Spitzer
Spitzer's picture

Bill Gross just said live on bloomberg that Japan is AAA when it is AA-, the king of the bond world, what an idiot.

I wish I had it on tape.

Sun, 08/07/2011 - 20:55 | Link to Comment let-them-eat-cake
let-them-eat-cake's picture

I wish I had it on tape.

"...on the tape"

 

I'd imagine you will presently.

Sun, 08/07/2011 - 21:14 | Link to Comment Spitzer
Spitzer's picture

I will try and get it on my Youtube channel here- http://www.youtube.com/user/FreeGoldObserver

Sun, 08/07/2011 - 21:18 | Link to Comment IQ 145
IQ 145's picture

That's interesting; stress disorder?

Sun, 08/07/2011 - 20:53 | Link to Comment LaLiLuLeLo
Mon, 08/08/2011 - 00:43 | Link to Comment StychoKiller
StychoKiller's picture

Time to sharpen up the Batt'leth

Sun, 08/07/2011 - 20:51 | Link to Comment jstalin
jstalin's picture

Ok tyler, for the love of god, sign up for cloudflare for zerohedge. It's only $20 a month and it will help all this damn congestion.

 

Cloudflare.com. Now. Please.

Sun, 08/07/2011 - 20:54 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Does that work?

Sun, 08/07/2011 - 20:57 | Link to Comment jstalin
jstalin's picture

Yes. I use it for a very high traffic site. It's an awesome service.

Sun, 08/07/2011 - 21:08 | Link to Comment PaperBugsBurn
PaperBugsBurn's picture

 

 

I just clicked on it and it wouldn't load the page... sorry but true. It also went to https for some reason.

 

I used to work for these folks  http://www.enki.co/

 

excellent systems

Sun, 08/07/2011 - 21:22 | Link to Comment IQ 145
IQ 145's picture

Thanks; I bookmarked this; will check it out.

Sun, 08/07/2011 - 21:09 | Link to Comment PY-129-20
PY-129-20's picture

For the Communist Party USA?

Sun, 08/07/2011 - 21:15 | Link to Comment jstalin
jstalin's picture

Communist porn site.

Sun, 08/07/2011 - 20:52 | Link to Comment Big Corked Boots
Big Corked Boots's picture

Looks like I picked the wrong week to wait for a dip.

Sun, 08/07/2011 - 20:57 | Link to Comment macholatte
macholatte's picture

I couldn't help it........

http://www.youtube.com/watch?v=GeI5ke0BENw

Sun, 08/07/2011 - 22:15 | Link to Comment caerus
caerus's picture

LOL!  "it's coming right at us!"

Sun, 08/07/2011 - 20:52 | Link to Comment eigenvalue
eigenvalue's picture

IMHO, $2830 is a more reasonable target.

Sun, 08/07/2011 - 20:52 | Link to Comment William113
William113's picture

Someday I will be as smart as the monkeys at Goolsmen Sucks. Bitchessss

Sun, 08/07/2011 - 20:53 | Link to Comment Spitzer
Spitzer's picture

And of course, never underestimate the retardation of your fellow market partisipants. The downgraded debt is rallying, just like I thought.

Sun, 08/07/2011 - 20:59 | Link to Comment let-them-eat-cake
let-them-eat-cake's picture

just like I thought

 

Knowing that before time would have been beneficial. Have you got a website I can subscribe to?

Sun, 08/07/2011 - 21:17 | Link to Comment Spitzer
Spitzer's picture

Look at my comments a few threads ago.

Actually, I have a Youtube channel called FreeGoldObserver. New material coming soon.

http://www.youtube.com/user/FreeGoldObserver

and on that video, I try and explain freegold to Peter Schiff but Ned Naylor Leyland seen my call with Schiff and expanded on in when he was talking about the Pan Asain Gold Exchange on Max Keiser's show.

Sun, 08/07/2011 - 22:47 | Link to Comment RockyRacoon
RockyRacoon's picture

Gotta re-post this since it's pertinent...  keep the PM faith!

“Gold has proven to be a superman investment. It can leap over buildings and do things that investments aren’t supposed to do. And it’s laughing at us."

Dennis Gartman agreed: "Ask the average Wall Street wiseguy if they’re bullish on gold. They’ll say, ‘Yeah, you gotta be, we got money problems [with the dollar].’ If you ask them how many hold gold? 'Very few,' " which is where he sees a weakness and potential for an overvalued asset.  “It’s a bubble in interest, not in owning," he said, "It’s fascinating: Everybody’s bullish, but very few are long."

(Emphasis added).......   There is a bubble in interest!   See?  Even Gartman can be right once in a while.

GOLD IS LAUGHING AT US

Sun, 08/07/2011 - 23:32 | Link to Comment Spitzer
Spitzer's picture

I like it, thanks for that.

Anyway here is that video of a good market call I made..

http://www.youtube.com/watch?v=U_-8cqD4BWU&feature=channel_video_title

Sun, 08/07/2011 - 20:54 | Link to Comment Divine Wind
Divine Wind's picture

Or as the Japanese say;

CroudFrare.  Now. Prease.

Sun, 08/07/2011 - 20:58 | Link to Comment jstalin
jstalin's picture

^^ this

Sun, 08/07/2011 - 21:06 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Too much traffic as all the other news sites are shit and nobody knows what's up.

Sun, 08/07/2011 - 20:55 | Link to Comment lawton
lawton's picture

"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default"
said Greenspan on NBC's Meet the Press

Sun, 08/07/2011 - 21:01 | Link to Comment silvertrain
silvertrain's picture

He didnt say what the value of that printed money would be though..

Sun, 08/07/2011 - 21:11 | Link to Comment nmewn
nmewn's picture

Ok...so I got wordy ;-)

Sun, 08/07/2011 - 21:09 | Link to Comment nmewn
nmewn's picture

He's right to a certain extent.

The debt is owed in dollars. They can print dollars. They never said that a dollar would be valued at less than a penny when the debt was repaid. Unfortunately, if you or I print a dollar to pay off my debt I go to jail...lol.

Its kinda like you loaning me a cow with my promise to repay you with a cow plus another cow and I give you two rotting dead cows ;-)

I know you know the above...just bringing the newbs up to speed.

Sun, 08/07/2011 - 22:07 | Link to Comment SHRAGS
SHRAGS's picture

Greenspan himself explained it pretty well in 1966:


 

Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which-through a complex series of steps-the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.

 

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.

 

http://www.321gold.com/fed/greenspan/1966.html

 

 

 

Mon, 08/08/2011 - 06:10 | Link to Comment nmewn
nmewn's picture

All true.

Miles and I discussed this very thing about a year ago. I would add it also enables eternal unfunded war making.

The debt money system is an insidious lie, a device concocted by the ruling class (statists & Keynesians) that allows any crooked politician to promise anything in the world to their constituents. Anything is possible with it (so they said) as nothing is ever ultimately paid for by the voter.

The lie is coming to an end...be prepared.

Sun, 08/07/2011 - 21:29 | Link to Comment Boop
Boop's picture

This from Bloomberg:

Greenspan said U.S. government bonds are safe investments. “Very much so,” he said. At the same time the S&P downgrade, which stemmed from the political clash over the debt limit, “hit a nerve that there’s something basically bad going on,” Greenspan said.

Such prescience! Such a grasp of the financial complexities! Maestro, Maestro!

Sun, 08/07/2011 - 21:41 | Link to Comment Smiddywesson
Smiddywesson's picture

You can't print away revulsion and rejection of a currency, in fact, the more you print the more undesirable it gets.

Therefore, Mr. Maestro is lying, again.

Sun, 08/07/2011 - 20:58 | Link to Comment rocker
rocker's picture

Hey, we are working again.  Liked it this way anyhow.

McConnell got his wish.  He crashed the market, in the name of Crashing Bambi.  McConnel goes for the two for.

So, I revise my previous comments. We are No Longer Japan.  I also said We are Japan.

Now, I say,  We are Worse than Japan.

Sun, 08/07/2011 - 21:45 | Link to Comment Smiddywesson
Smiddywesson's picture

Truer words were never typed in ZH history.  No we are not Japan.  We are a reserve currency, but we don't have the savings to self finance our debt, and our predilection for war and the the military industrial complex putd Weimar Germany to shame.  We are about to explode.

Sun, 08/07/2011 - 20:59 | Link to Comment Monkeyfister
Monkeyfister's picture

http://www.bloomberg.com/tv/

Bloomberg TV is doing a very serious and heavy Special Coverage of this crash. They're bringing in some of the best Financial minds. Just had Jim Rogers, and Bill Gross, Krugman was on to say, "if they had only listened to me," and James Chanos is on right now.

Rubini coming up in the next segment.

Worth watching.

Sun, 08/07/2011 - 22:17 | Link to Comment DosZap
DosZap's picture

MonkeyFister?,LOL

<Krugman was on to say, "if they had only listened to me,"  >

YOU ARE shitting, RIGHT?.

Wht a friggin MORON.

Sun, 08/07/2011 - 20:59 | Link to Comment Marcuz Aurelius
Marcuz Aurelius's picture

Gold man, its a religion ! Heed their call. and it will be done.

Sun, 08/07/2011 - 20:59 | Link to Comment KowPie
KowPie's picture

Story of my life. I never sign up for any kind of blog of any sort. This is the only one I am a member of or have ever been a member of. I wait over a year (closer to 2) to sign up for this one, deciding it's well worth it. I do it and POOF. Just like the economy it goes to shit. WTF? No more list of comments under the account. No more junk buttons. That's half the fun. Not to mention the funky crashes and lack of server availability lately. Tyler, does Geithner manage your servers? PLEEEAAASSSEEEE fix this. If not I'll be mentally fucked for life (more than I already am). Thanks.

 

P.S. Even with the problems, it still rocks.

Sun, 08/07/2011 - 21:06 | Link to Comment rocker
rocker's picture

They will fix it. They are working right now.

You must realize. Those in the know ,(diehard ZHer's like you and I),  come here first.

I am willing to bet that demand for ZH is at or exceeds record levels right now.  Where the hell else would you go for the truth !?!

Zh Rules !!!

Sun, 08/07/2011 - 21:08 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Anyone else notice the seeking alpha spam everywhere. I thought they were somewhat reputable now, they have spammers on many website forums

Sun, 08/07/2011 - 21:49 | Link to Comment Smiddywesson
Smiddywesson's picture

That site has some good content, but it isn't worth the effort of keeping the propaganda out of your mind.  I dropped them long ago.

Sun, 08/07/2011 - 21:11 | Link to Comment KowPie
KowPie's picture

Agreed. Hence the final sentence. Just venting, pissed between server crashes and my shitty, low tech, sometimes it works but I'm fucked because I live in the middle of nowhere and they have me by the proverbial ballsack, bullshit, nasty ball sucking, vampire draining my blood in the form of monthly fees, worst ever in the known universe interwebification unconnectivity service.

Sun, 08/07/2011 - 21:19 | Link to Comment nmewn
nmewn's picture

KowPie,

Sorry for all the cow analogies & jokes...but they are useful. And your not alone, I'm in the sticks and a heavy fog knocks the power out.

But I got two wells...I won't die of dysentery or thirst ;-)

Sun, 08/07/2011 - 21:32 | Link to Comment KowPie
KowPie's picture

Amen brother. In the weeds has it's disadvantages but the pros far outweigh the cons.

Sun, 08/07/2011 - 21:34 | Link to Comment Yen Cross
Yen Cross's picture

  Good on both of you!  TWO and ONE Half!

Sun, 08/07/2011 - 21:59 | Link to Comment nmewn
nmewn's picture

This is starting to look like venison or fresh water for fish trading Yen...why, this is almost how an economy is supposed to work ;-)

Sun, 08/07/2011 - 22:09 | Link to Comment Yen Cross
Yen Cross's picture

  Carbon Fiber didn't exist back then! You are a man of truth!

Sun, 08/07/2011 - 21:50 | Link to Comment Smiddywesson
Smiddywesson's picture

Real websites don't need bandwidth.

Sun, 08/07/2011 - 21:55 | Link to Comment KowPie
Sun, 08/07/2011 - 22:13 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

That's pretty bad, but I sent it along to my joke list...

Sun, 08/07/2011 - 23:09 | Link to Comment RockyRacoon
RockyRacoon's picture

Synopsis of what is wrong with the site:

http://www.theworldsworstwebsiteever.com/new_page_1.htm

Sun, 08/07/2011 - 21:22 | Link to Comment gwar5
gwar5's picture

Actually I have the same problem.

Have Wi-Fi and remote location. Have Verizon Android, use the hot spot, but is slow 3-G and cuts out all time resulting in many double posts. But tonight special problems noted only at ZH, presumably due to traffic. Am upgrading to 4-G near future anyway to see if it will improve things. 

 

 

Sun, 08/07/2011 - 21:28 | Link to Comment KowPie
KowPie's picture

I connect (ha ha ha) using Verizon also. For me, 3G is a rare treat and 4G is a myth designed to get me to upgrade to a more expensive phone.

Sun, 08/07/2011 - 21:16 | Link to Comment gwar5
gwar5's picture

Welcome Kowpie. No worries.

They tweaked it last week, and then tweaking it again last couple of days, just in time for the global economic bonfire. It'll get fixed.  I'll junk you anyway if it will make you happy!

 

**JUNK 1**

There. Spit spot.

Sun, 08/07/2011 - 21:26 | Link to Comment KowPie
KowPie's picture

"Snip, snip, snip, snip..... sploosh (no, not what you think, it's the sound of glue), fwap (nor that, which is the sound of pasting said glued object)... hmmm, looks good!"

That's me cutting and pasting your jumk (boy, that REALLY DIDN'T SOUND GOOD AT ALL) to my own cardboard server file. Thanks.

Sun, 08/07/2011 - 21:53 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Welcome aboard the precious metals express!  

T. D. is becoming the mainstream media.  This involves growing pains and ZH buying now unneeded computer equpment, software and infrastructure from CNN, CNBC, CBS, NBC, MSNBC and the rest of establishment, dinosaur propaganda laden, government run fascist media!

Tuco

Sun, 08/07/2011 - 20:59 | Link to Comment Bear
Bear's picture

Does this mean that with their 3 month estimate at 1645 that I'll be able to buy it for 1645 in three months?

Sun, 08/07/2011 - 22:53 | Link to Comment StormShadow
StormShadow's picture

LOL.  $1800 will forever be in our rearview mirror by October.  Of course, we'll see wild gyrations in PMs and everything else going forward, but the long term trendline only points north.  Interesting times.

Mon, 08/08/2011 - 00:45 | Link to Comment Hacked Economy
Hacked Economy's picture

Agreed. That's why I made my last (final?) purchase of more silver and SAEs this past weekend on the dip. I bought my physical...now it's time to sit back in the rocketship and ride it up the charts. My FRNs will now at this point forward be used to pre-pay my debts and add to my stockpile of food and supplies. The days of $10, $20, and even $30 silver are forever behind us. As Benny prepares to announce QE3, $40 will slip into the fog as well. Get ready for $50 to be the norm by October.

Sun, 08/07/2011 - 21:00 | Link to Comment Boston Matrix
Boston Matrix's picture

is the denial phase over now, then?

 

i'd say something more meaningful but i can't stop laughing.

Sun, 08/07/2011 - 21:00 | Link to Comment 4realmoney
4realmoney's picture

I think they meant $18,300. Keep track of Krugerrand prices.

Sun, 08/07/2011 - 21:22 | Link to Comment Stuart
Stuart's picture

1830 by December is much more accurate.

Sun, 08/07/2011 - 21:00 | Link to Comment Papaneuf
Sun, 08/07/2011 - 21:02 | Link to Comment Monkeyfister
Monkeyfister's picture

I suspect a portion of this crash is a result of Mr. Jeethner vowing to stay on, with Obama's nod.

He and Larry Summers needs to be thrown against the wall, and then thrown out on the street.

 

 

Sun, 08/07/2011 - 21:07 | Link to Comment KowPie
KowPie's picture

Wrong. Garbage gets taken to the dumps, not thrown on the street. Unless of course you're Greek.

Sun, 08/07/2011 - 21:06 | Link to Comment Yen Cross
Yen Cross's picture

 Bad dreams! Really bad dreams!   Trick or treaters dressed like, Little Red Riding HOOD!

Sun, 08/07/2011 - 21:06 | Link to Comment Ricky Bobby
Ricky Bobby's picture

It takes a SuperNova to create Gold, yes thats right it's fucking stardust.

Sun, 08/07/2011 - 21:32 | Link to Comment Boop
Boop's picture

So is almost everything else.

Sun, 08/07/2011 - 21:13 | Link to Comment Re-Discovery
Re-Discovery's picture

Those price targets might not last a week.

 

BTW, Silver is on a rocket ship right now.

Sun, 08/07/2011 - 21:21 | Link to Comment Prometheus418
Prometheus418's picture

Indeed.  I believe the Bernak may have angered it.

Good for me, I bought Wed, Thurs, and again 5 min before the Asian open.  The only shipment that isn't already in the mail is the one from tonight, but I'm certain that the mail will continue to function until the end of the week.  

Was a shaky time right before I hid the bid button tonight, though.  Could've gone the other way.

 

Sun, 08/07/2011 - 22:07 | Link to Comment Absinthe Minded
Absinthe Minded's picture

I know the feeling, it was hard to pull the trigger but I bout another Gold Maple after buying a Gold Philharmonic for $100 less a week ago. Dollar cost averaging. Just keep telling yourself that, in silver I'm way ahead averaging it. I'm pretty sure we won't be sorry.

Sun, 08/07/2011 - 23:13 | Link to Comment RockyRacoon
RockyRacoon's picture

Everybody talks about how overpriced the U. S. Mint is and they'd NEVER buy Mint products....

Here's a tad of that faulty thinking:

===============================================

2011-W Uncirculated Silver Eagle Scheduled

Posted: 03 Aug 2011 09:20 PM PDT

The US Mint has added a release date of September 29, 2011 for the 2011-W Uncirculated Silver Eagle.

Previously, the coin had been listed as “TBD” on the scheduled product listing and “early fall” on the tentative product page. Although an exact date has now been published, it still remains subject to potential change.

The product is an additional collectible version of the American Silver Eagle, following the proof coin released on June 30. The uncirculated version carries a finish similar to the bullion coin and is struck on specially burnished blanks. The coins also carry the “W” mint mark to denote production at the West point Mint. As with other Silver Eagles, the coins are struck in .999 fine silver with a weight of one troy ounce.

The last collectible uncirculated silver eagle was released back in 2008. The product was canceled for the following two years, as the US Mint struggled to meet demand for bullion versions of the coin. Under previous law, the US Mint was required to produce the bullion coins in quantities sufficient to meet public demand. Since they were not meeting full demand, they sourced all silver planchets to the production of more bullion coins and canceled some collector versions of the coins. The law has since been changed to allow some flexibility for the production of collector coins.

Pricing and ordering limits for the 2011-W Uncirculated Silver Eagle have not yet been published.

When last available in 2008, the collectible uncirculated Silver Eagles were priced at $25.95 each. The same year, the proof version was priced at $31.95. During the year, the market price of silver ranged from a low of $8.88 per ounce to a high of $20.92. The cumulative average for the year was $14.99.

The currently available 2011 Proof Silver Eagle is priced at $59.95 based on a market silver price of $37.50 per ounce.

Sun, 08/07/2011 - 23:14 | Link to Comment Yen Cross
Yen Cross's picture

 That was Fantastic!  Been there Done that!    Nice comment!

Sun, 08/07/2011 - 21:10 | Link to Comment nasa
nasa's picture

12 months?  More likely to see 2K before the end of the week.

Sun, 08/07/2011 - 21:10 | Link to Comment gwar5
gwar5's picture

 

Goldman Sachs is finally raising gold price estimates and giving it some cred?  That's the kiss of deathperation.

Sun, 08/07/2011 - 21:10 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

Gold is now $20 away from parity with platinum. That doesn't happen that often historically and when it does it doesn't happen for long. Sometimes platinum has traded as high as almost triple the gold price.  Me thinks platinum also worthy of a price hike forecast. After all it takes a lot of black gold (money that is, Texas Tea) to pull an oz of platinum out of the ground and God isn't making any more of it. 

Sun, 08/07/2011 - 21:46 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, I have followed the metals for decades and only twice can I remember gold and platinum at parity, once in the 90s and once a few years ago.

Tuco Benedicto Pacifico Juan Maria Ramirez

Sun, 08/07/2011 - 21:47 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Platinum, by the way, is "15" times more scarce than gold!

Tuco

Sun, 08/07/2011 - 22:17 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I like platinum too (and have some), but I like gold more.

Sun, 08/07/2011 - 22:57 | Link to Comment StormShadow
StormShadow's picture

Anyone else remember not too long ago JPM was taking a sizable interest in Platinum?  Hmmm...

Sun, 08/07/2011 - 21:11 | Link to Comment caerus
caerus's picture

it's gold man!

Sun, 08/07/2011 - 21:12 | Link to Comment scatterbrains
scatterbrains's picture

lol in this one particular case GS really means it this time.. honestly guys, they really do.

Sun, 08/07/2011 - 21:26 | Link to Comment Prometheus418
Prometheus418's picture

Who cares what they think?

Anyhow, it could be them trying to retain some credibility now that the wheels are falling off- kind of like the S&P's "Too little, too late" downgrade showboating.  They'd look pretty dumb if they didn't bump it up a bit, and then fail to keep the price supressed.

Sun, 08/07/2011 - 21:12 | Link to Comment walküre
walküre's picture

DOW Futures off 2% and DAX Futures up 1%.

Gold up, up and beyond in USD.

Here's what I'm trying to figure out all weekend since the announcement.

What if all UST paper is downgraded and now considered almost toxic but the would-be sellers aren't finding any buyers.

Who is the counterparty that is taking the toxic paper from Asia and Europe which are selling and will be selling more as the rout continues?

For POG to rise considerably, the funds have to be liquid to convert into gold. The UST bag holders can try and liquidate the worthless paper all day and night long, but if there's no buyer for the UST paper then there's no "flight to quality", no flight into gold.

Cash reserves only go so far. With liquidity in question, the cash positions are increasing natually because nobody will know what tomorrow brings and how to keep paying bills unless you're liquid.

Gold is illiquid. Sad but true. Central banks are condemned to buy more paper (their own or their cousin's) and may have to liquidate even gold in the process.

ECB for example has no liquidity to pile into gold, FED the same. Russian and Chinese central bankers can buy gold for now but their bigger concerns are the effects of recession on resources (Russia) and the manufacturing (China).

I'm wanting the gold moonshoot as much as all the gold bugs in the world but unless there's officially a "reset", I can't see where the liquidity is supposed to be coming from to rise gold to ever higher levels.

Sun, 08/07/2011 - 21:19 | Link to Comment DosZap
DosZap's picture

walk,

Make it simple, whatever.

It's always been about INSURANCE until the reset.

I have never been fond of the idea of being sent home w/ a bloody rectal opening, and a pocketful of IOU's.

Sun, 08/07/2011 - 21:24 | Link to Comment walküre
walküre's picture

DAX Futures are up!

NIKKEI has recovered, only down 1% now.

Just wondering if we've seen the worst last week and the market is giving "buy" signals.

Gold is a hedge, absolutely.

 

Sun, 08/07/2011 - 21:39 | Link to Comment KowPie
KowPie's picture

My sentiments exactly. If it keeps on chuggin' along on twisted rails I'll be just fine. If not and it goes totally to shit, that's what I have my PM backup for. It's not an investment for me, simply an insurance policy for staples that I am unable to personally grow, kill or manufacture post implosion.

Sun, 08/07/2011 - 21:44 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

The most brilliant comment I have heard in a while, "and" from a KowPie no less:)

+1

Tuco Benedicto Pacifico Juan Maria Ramirez

Sun, 08/07/2011 - 21:51 | Link to Comment KowPie
KowPie's picture

You can't be brilliant if you don't KNOW shit.

 

 

Edit: ...sound of scissors cutting out "+1" (RE: Earlier post).

Sun, 08/07/2011 - 22:12 | Link to Comment Yen Cross
Yen Cross's picture

 CALL Me "Poo Poo"" on Roids!

Sun, 08/07/2011 - 22:28 | Link to Comment KowPie
KowPie's picture

Note the crown on my logo. I am the king of shit. Hmmm....

 

 

Edit: Not quite sure about this post...

Sun, 08/07/2011 - 23:15 | Link to Comment Yen Cross
Yen Cross's picture

NOTED;

Sun, 08/07/2011 - 21:28 | Link to Comment Greenhead
Greenhead's picture

ECB and the FED have a printing machine, gives them all the liquidity the want.  With bonds crashing their liquidity is what keeps the system alive.

Sun, 08/07/2011 - 21:31 | Link to Comment Yen Cross
Yen Cross's picture

  KISS yield curves!

Sun, 08/07/2011 - 21:42 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I disagree.  Gold "is" liquid!  Like ourselves Central Banks will just have to pay up for it for the next ten years.

Tuco

Sun, 08/07/2011 - 21:45 | Link to Comment Yen Cross
Yen Cross's picture

 A man of reason! I dis- agree though>  2 sides make a trade<  I respect your wisdom

Sun, 08/07/2011 - 23:55 | Link to Comment blindman
blindman's picture

enter qe3

Sun, 08/07/2011 - 21:18 | Link to Comment Yen Cross
Yen Cross's picture

  If ? JUST in case!  LONG LEAD!  Atomic # 82 Pb...

Sun, 08/07/2011 - 21:19 | Link to Comment Boston Matrix
Boston Matrix's picture

whole lot of buyers out there right now. i reckon 1700 gold before i finish this bottle of wine.

Sun, 08/07/2011 - 21:19 | Link to Comment indygo55
indygo55's picture

The value of said money would be "transitory".

Sun, 08/07/2011 - 21:21 | Link to Comment DosZap
DosZap's picture

Yes,remember that, Everything is really, truthfully TRANSITORY..........even your life.

And you'll do well Grasshopper.(<:

Sun, 08/07/2011 - 21:20 | Link to Comment High Plains Drifter
High Plains Drifter's picture

let's see how long masters' blog is up and running?  i predict not long. she is not very well liked by the internet community , that is for sure. now she has provided the anger a place to go and manifest itself..........ha ha ha ha

Sun, 08/07/2011 - 21:35 | Link to Comment Stormdancer
Stormdancer's picture

They'll probably keep the blog for image polishing ..  but I bet comments get disabled in 3, 2, 1.....comments are already making the image polishing goal a bit problematic :)  Love it....!

Sun, 08/07/2011 - 21:38 | Link to Comment Yen Cross
Yen Cross's picture

  My every last cent, Will go DUKE & Squint EASTWOOD!

Sun, 08/07/2011 - 21:21 | Link to Comment Tater Salad
Tater Salad's picture

Can anyone tell me how to short Obama?

I tried the ticker, WTF-O, didn't seem to work...

 

Sun, 08/07/2011 - 21:39 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Prevent a false flag like OKC which saved Bill Clinton's second term.

Tuco

Sun, 08/07/2011 - 21:21 | Link to Comment Bastiat
Bastiat's picture

we are raising our gold price forecasts to $1,645/toz, $1,730/toz, and $1,860/toz on a 3, 6, and 12-month horizon, respectively."

 

No way gold will get to 1645 in three months!!  Oh . . .

 

How about 6 and 12 weeks for those second 2 numbers . . or maybe days for the 1730? 

Sun, 08/07/2011 - 21:23 | Link to Comment strickin@sbcglo...
strickin@sbcglobal.net's picture

It may be @ 1830 by Breakfast......

Sun, 08/07/2011 - 21:24 | Link to Comment pleseus
pleseus's picture

Silver shorts getting blown out.  Seems like a fast move to $ 50.00 oz coming.

Sun, 08/07/2011 - 21:25 | Link to Comment Mises
Mises's picture

Question is:

 

Where does GDX open tomorrow?

Sun, 08/07/2011 - 21:25 | Link to Comment drawswell
drawswell's picture

So long term interest rates are going to stay low? I should have stayed at the 3.6 variable on the mortgage!! But everybody kept saying lock in, lock in, lock in. So I lock in at the fixed 5.6, and here it is 2 years and I coulda had 3.6 and there're STILL going lower!!!???

(this is still much better than the original 8.25 fixed from chase I rolled over from. I shouldn't complain too much...)

I thought long term rates were going to expode higher?

 

 

 

Sun, 08/07/2011 - 21:37 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Sounds like you made a very wise decision based on the information available at that time.  Good for you!

+1

 

Tuco

Sun, 08/07/2011 - 23:02 | Link to Comment StormShadow
StormShadow's picture

Stay the course.  In the long run they MUST go up, CB intervention be damned.

Sun, 08/07/2011 - 21:26 | Link to Comment Kali
Kali's picture

Wow, ran out to return a movie and I see the nice little HK pop for both G&S!  No shit stirckin, might be there by morning.

Sun, 08/07/2011 - 21:25 | Link to Comment scatterbrains
scatterbrains's picture

Dosn't look like platinum, palladium, copper, aluminum are feeling this dollar reset theme... only gold, while silver is trying to detach from it's copper correlation, at least the one that came back in line over the last 10 days prior to this credit down grade by the cia.. i mean S&P.. and now Goldman says buy gold hmmm.  Rising cost of credit, rising taxes, budget cutting, euro implosion, depression relapse be damned.

Sun, 08/07/2011 - 21:28 | Link to Comment Careless Whisper
Careless Whisper's picture

$1730 in six months? pffft. prolly by wednesday. these guys at goldie are nothing but bailed-out whores. pure drivel. why does zh publish this crap and be a part of the facade that they are a bunch of knowledgeable legit investment bankers?

Sun, 08/07/2011 - 21:35 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

So, you are saying that T. D. should only publish pieces he believes in 100%!?  One must know one's enemies which often times means posting their propaganda!

Tuco

Sun, 08/07/2011 - 21:38 | Link to Comment firefighter302
firefighter302's picture

What are you talking about?

I think you've missed the entire point, Careless.

 

Sun, 08/07/2011 - 21:40 | Link to Comment Yen Cross
Yen Cross's picture

 POINT? ya inept troll!?

Sun, 08/07/2011 - 21:31 | Link to Comment pitz
pitz's picture

Yet Barrick Gold will probably sell off tomorrow (ABX).  Go figure.

What's really going on here, traders confused between ABX, Barrick, and ABX, the subprime mortgage bond index?

Sun, 08/07/2011 - 21:51 | Link to Comment caerus
caerus's picture

when equities get panic sold...bear market like sold...it's tough for even the good companies to not go down...these miners still have financial risk, etc...gold otoh has no counterparty risk

Sun, 08/07/2011 - 21:32 | Link to Comment AlmostEven
AlmostEven's picture

The Bernank will soon change his forecast on gold from "Not sure why I'd want any" to "Wish I had a whole farkin' lot more." I rate his silver nose-hair clippers a definite "Hold."

Sun, 08/07/2011 - 22:57 | Link to Comment Peter_Griffin
Peter_Griffin's picture

   / \

/      \          \     /

 l    l              \/

 l    l              /\

                  /     \

-----

 

  l    l

  l    l

\      /

   \/

 

 

Edit:  The click rating system is much easier.

Sun, 08/07/2011 - 21:32 | Link to Comment vegas
vegas's picture

WTF, $1830 in 12 months? How much do they pay this guy?

The way Obama is going you can put another zero in the mix.

Do NOT follow this link or you will be banned from the site!