JP Morgan Warns Gold to Go Parabolic and Rise to $2,500 By Year End

Tyler Durden's picture

Submitted by Gold Core

JP Morgan Warns Gold to Go Parabolic and Rise to $2,500 By Year End

Gold in USD terms is 2.4% higher and is higher against all currencies and trading at USD 1,760.40 , EUR 1,234.10 , GBP 1,075.70, CHF 1,306.80 per ounce and 132,719.00 JPY.  

Gold’s London AM fix was USD 1,770.00, EUR 1241.75, GBP 1080.98. Gold reached new record nominal highs at $1,780.10/oz and new nominal highs in euros and sterling also this morning.

Cross Currency Rates

Asian equities were mixed with sharp falls seen on the Hang Seng but the Nikkei recovered to only finish down 1.7% and the Chinese and Australian stock markets actually managed to rise on the day.

The FTSE, DAX and CAC are down 0.7%, 1.9% and 0.2% respectively but US futures are showing tentative gains.

There were further signs of stagflation in the UK as manufacturing unexpectedly fell in June and the trade gap widened. This is further evidence that the economic recovery is faltering in the UK and QE has not worked. 

US Major Debt Holders

U.S. Treasuries dropped, pushing 10-year note yields up from the lowest level since January 2009, on speculation the Federal Reserve may introduce new stimulus measures today to boost financial confidence.

More ‘stimulus’, QE3 or whatever new fangled acronym is dreamed up by desperate policymakers will of course be bullish for gold and silver. 


J.P. Morgan Chase & Co. (JPM) and Goldman Sachs Group (GS), raised their gold-price late yesterday.  

J.P. Morgan now sees gold prices at $2,500 a troy ounce by year-end, while Goldman expects gold at $1,730 in six months and $1,900 in 12 months.

This may be a sign that the current sharp rally may have reached its zenith as neither bank has a great track record regarding short term trading calls on commodity markets.

In the short term there is the risk of a correction as gold’s rise is now becoming front page (on front page of FT today) and headline news.

The fact that silver has fallen in recent days and remains below $40/oz and the fact that gold mining equities have also not risen may also be a warning signal.

Gold has risen from below $1,500/oz to nearly $1,800/oz in 5 weeks (since the start of July) and is up nearly 18% in dollar terms. 

Therefore, in conventional terms gold is most certainly overbought. 

However, we are not living in conventional or normal times and the ongoing global market crash and global currency debasement means that there is a chance that gold will go parabolic as it did in the 1970’s.

Investors would be prudent to continue to make the trend their friend and any pullback should be used to buy the dip.

Those wishing to take profits might do so after two days of lower prices or a weekly lower close. However, given the level or market, systemic and monetary risk, all investors are advised to maintain a core financial insurance precious metals holding.

Gold’s bull market looks very secure for the foreseeable future due to strong institutional demand (from astute hedge funds and central banks) and store of wealth demand from Asia.

As does silver’s due to increasing investment and safe haven demand and the continuing growth in industrial demand for the versatile precious metal.

Silver is trading at $38.14/oz, €26.73/oz and £23.29/oz. 

Platinum is trading at $1,722.00/oz, palladium at $732/oz and rhodium at $1,800/oz. 

(Wall Street Journal)
Gold Hits Another Record

(Financial Times)
Traders target $2,500 high for bullion

(Wall Street Journal)
JP Morgan analyst sees gold at $2,500 by year-end

(CBC News)
Gold may hit US$2,500 in 2011: JP Morgan

Britain, other eurozone countries face ratings cut: Jim Rogers

(The Telegraph)
European Central Bank must go nuclear to save Europe

(King World News)
If you think gold is flying now, wait for QE3, Turk tells King World News

Change You Don't Have to Believe In

(The Telegraph)
The Bull Case for Gold

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youngman's picture

Its going to be another interesting day....T-Bill auction.....Bernanke misspeaks.....and BAC crisis......right now gold up and silver down..big in both directions...Munis got hit hard.....and Thursday will be another 400,000 plus unemployment day.....reatail sales will be cards up....more and more people on food stamps....its no longer a mark of shame..its a right.....why shouldn´t my government by my food...people ran to treasuries..but now they see that mabye they ran to I think they will slowly move to PM´s...

rfullem's picture

boring - still. if you bought gold at $300/oz, Id be impressed.  What to buy? Asia debt and consumer shares and US export/tech companies.  have a nice day. 

Long-John-Silver's picture

I got in at $700 and I'm still impressed.

smore's picture

Bought my first Credit Suisse bar on eBay for $300.  Advertised as being having been won as a sales incentive at Microsoft.  Still have it.

gmak's picture

This article is not very useful. Gold may have peaked or it may go up. D-uh.

Rynak's picture

Yeahyeah, we get it JPM.... pump'n dump.... buy now, so that we can dump you on the way up when QE3 gets announced, precisely to stem gold from going parabolic.

Bottom line: If things go according to what JPM wants, then what will happen is exactly the opposite of what they are "warning" about... at least in the shortterm.

johnnymustardseed's picture

silvergoldsilver has a link to Blythe Master's website. I think she is fucking silver just to get even for the nasty messages people left on her blog. She will do what she wants when it comes to paper silver, but she can't get the physical. Here is her blog link  Tell her how happy she makes you

caerus's picture

lol...the comments crack me up

Stares straight ahead's picture

Best to be nimble.  I have fired up my algo, moved my computer closer to the wall and shortened the cat 5 cable.

THE DORK OF CORK's picture

Nah this is screaming freegold to me - oil down , silver down , dollars turning into synthetic greenbacks - Italy broke the camels back , Italy & Spain have 3 trillion of sov debt baby.

They need cash to continue with their payments system in a efficent manner.


GetZeeGold's picture


Which country are you from?.....USSR. musta just popped in from a time machine.

There is no USSR anymore.......but there is a USSA.



Different names.....same results.


machineh's picture

Victory in Afghanistan, comrade!

Long-John-Silver's picture

Oh Shit! The Satellite States in the South just broke away again. It's 1861 all over again and our military is scattered all over the world.

GoldMeUp's picture

Can anyone spare me some gold?  Just a few coins please I don't have much money.

onarga74's picture

The last 3 week move in gold is the top (1650-1750 area) No one is bearish on gold and obviously people regard it as a "safe" haven.  Everyone including sovereigns are in and on board.  This train to their chagrin is going backwards.  The high seen overnight won't be seen again for decades if then.

Smiddywesson's picture

Nice try.  Only the governments and central banks of the most powerful nations in the world know where this is going, and they are stacking gold.  Do you suppose they bought it because they know the value will go down?

onarga74's picture

That presupposes that governments and central banks are good money managers.  It also reflects maximum pain. CNN just spent 10 minutes telling everyone that people are leaving the uncertainty of the stock market and fleeing to the safety of gold.

Look at a chart of gold from 1980 to early 2000's...sure was a need for safe havens then but gold wasnt it.  Explain to me why it is now. Just because? How do you know when you don't need it anymore?  The maximum amount of people and governments are in the metal now.  You just need more people and governments to buy after you did. Good luck. 

gratefultraveller's picture

lfmfao - "the maximum amount of people are in the metal now"

That meager 1% of the population equals maximum amount for you? What are you smoking, I want some of that!

smore's picture

Couldn't have said that better!  Totally ignorant, Sarah!

Long-John-Silver's picture

We are repeating the 1929 crash and depression. We have entered the second dip where no one trusts the governments money. This caused an attempted confiscation of Gold as it had become a direct currency competitor with the US Dollar at that time and it was losing. Repeating history is a bitch. Go now and read the history of the Great Depression and use it as a guide.

EscapeKey's picture

Oh awesome, a new super-confident PM troll.

So troll, are you short gold, or are you just another do-as-I-say-not-as-I-do run of the mill troll?

"Why it is now" - that's just about the most commonly discussed topic, and if you don't know by now, there's hardly a point to debating you.

Temporalist's picture

Look halfwit people also forgot chicken soup was good for you because McDonalds came along.  Does that mean chicken soup isn't really good for you?

Your "rationale" for people needing to buy after you applies to EVERYTHING dumbass.  1980 the interest rate went over 20%.  That is nowhere near on the horizon anymore and even if it were I think it's too late as people realize the rating agencies, banks and financial institutions are as corrupt as the government and will spend and steal until there are no productive people remaining.

There are trillions in paper debts for sovereigns and large banks and they have not even started to buy gold yet just as the major funds haven't but a few.

And seriously!?!?!  CNN is your great indicator!?!?  Who the fuck even watches that garbage anymore?  You are behind the times, out of the loop, left in the dust, and you don't even know it.  You know what else happened in the last historic gold run up?  It went up 2400% from it's starting price.  In this case that is $256; you can do the math...there is something called a calculator now too.

People don't need luck they need to disregard troll asspuppets like you.

TradingJoe's picture

ANY "strength" today will be SOLD SHARPLY, QE3 ain't coming just yet! Gold will move higher, Silver will catch up soon enough! Fact is though, FED won't move until JH! So plenty of time to back up the truck on what you please to have:))!

THE DORK OF CORK's picture

Yee guys are too dollar centric - Gold is intregal to the Euro system - if the Euro dies Gold dies but it ain't dead yet.

smore's picture

Gold may be integral to the Euro, but that in no way implies that the Euro is integral to Gold.  "if the Euro dies Gold dies"????  WTF are you smokin' today, Dork?  Is this some obscure celtic joke?

THE DORK OF CORK's picture

The dollar reserve is back in business............................

Ganja Jane's picture

Junk button, please?

DavosSherman's picture

and the dumbasses are probably shorting it.

choorles's picture

when fox news tells you to buy gold.. it is probably time to sell... and buy silver..

Dromen's picture

Ok...can someone please explain somthing to me.  Here at work I only have one way to invest in hold and that is the Fidelity Gold Mining Fund FSAGX...problem is there seems to be a huge disconnect between the Fund and the price of Gold...this is very frustrating !!! 

Dromen's picture

Ok...can someone please explain somthing to me.  Here at work I only have one way to invest in hold and that is the Fidelity Gold Mining Fund FSAGX...problem is there seems to be a huge disconnect between the Fund and the price of Gold...this is very frustrating !!! 

caerus's picture

the top holdings in the fund are mining companies...unfortunately the miners are going down with the rest of the market r now...also (the miners) do not always necessarily track the price of gold...they'll do ok later i expect...if you want gold/silver exposure the best way imo is to buy bullion with your extra cash...imo

Smiddywesson's picture

Yes and naked shorting is rife among the miners.  TPTB hate bullion and miners, but their ability to fix the price of the miners is much stronger than with bullion.

Long-John-Silver's picture

Mines are subject to nationalization by the host government. Every mine in every country is vulnerable including the USA. The instant the government wants the mine for what has become it's only currency source your stock value goes to ZERO.  

scatterbrains's picture

DZZ priced like an option that never expires... for those feeling a little bloated with their gold horde.


f16hoser's picture

Odd; they didn't mention Silver going parabolic......

ReactionToClosedMinds's picture

methinks one of the 'dynamics' that is not getting sufficient 'press' in the West (Europe & No. America) is that Asia and So. America, but particularly Asia, is very concerned about inflation and store of value.  This too complicated, behavioral and possibly cultural (also imply historical ..... generation after generation have seen massive instability .... natioanlly, regionally, politically, economically, etc.).

As a demographically broad new global middle class emerges, which is natural enough, you have different patterns & ripple effects emerge .... beileve gold bid panic is part of this.



Would love to see some global bid proportion analysis ... am sure the "West' (here including Middle East) is still driver but have to believe 'Asia' starting to impact more & more


FranSix's picture

Some of the forecasts for gold may be completely out to lunch, but others have been much more accurate.  I see the top-calling hasn't changed.

This forecast was published some time ago on

Its looking very much like $1880 is a very good guess.

Smiddywesson's picture

If one believes the rise in gold is being fueld by currency destruction, and one has no faith that currency destruction will be reversed, then one has no logical basis for calling a top in gold.  Gold will run right through $1880 because the USD and Euro cannot be saved. 

wombats's picture

But what is the spot price for tungston?

JW n FL's picture



so what they are really saying is..


that the FED and JP Morgan are working together to create a Bubble so that they can create a Panic sale at a later date and force the price back down beyond where it naturally should be.. to obviously re-enforce the position of the dollar in the market place (Globally).


It is never what are they giving you.. it is what are they taking away.

JW n FL's picture

and as Stewie the Pirate mentioned on this posts twin.

no one is mentioning silver, no one is talking it up or down.. and the downward pressure is Very Real!

Gold $1740(ish)

Silver $37(ish)????

are we going for 60 to 1? 70 to 1?

I understand that by allowing Gold to rise that when the JP Morgue + The FED start pouring money down the Money Hole ( ) that the drop in Golds Price will be that much more.. thusly taking that much longer to equalize to its un-inflated, un-restrained price.

but silver has the full set of breaks on.. while Gold is ignored??

"O" now I get it!

Keep silver low! Gold looks parabolic!

it is the cheaper of the two to control plus manufacturing needs.

besides they already let silver go to $49(s) and held Gold down and that didnt work! better to try it this way.

These people who manage this with our Tax Dollars should get a real job.. and NO! this is not a real job and / or God's Work!

Smiddywesson's picture

that the FED and JP Morgan are working together to create a Bubble so that they can create a Panic sale at a later date and force the price back down beyond where it naturally should be.. to obviously re-enforce the position of the dollar in the market place

The problem with that argument is that the Fed and JP Morgan don't control everything.  The Fed is at the heart of the conspiracy to hold down gold prices while the central banks of the world buy, but they can't stop other central banks from cheating the conspiracy and buying more than their share.  If the Fed tried to create a bubble in gold and then crash it, the other central banks (like China) would rush in and gobble up bargains.  The ability to manipulte gold lower has reached diminishing returns.  It is not going to crash, period.

JW n FL's picture

it is in the best interests of any "Central Bank" that prints paper to hold the value of Gold Down.. at the risk of de-valuing their own "Fiat" by allowing any great rise in Gold Prices.

Hense, it is not what they are giving.. but what are they taking.

Arch Duke Ferdinand's picture

*****Top 5 Places "Not To Be" When The Crash Comes

""The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money.....""

*****Why Speculators Should Sell Their Gold Now

""looking back five or 10 years from now, this is likely to be viewed as yet another investment mania. (Bear in mind that in 2005, investors made up 16% of the demand for gold. Today, it’s more than 40%....""

*****OT: Film Festival Short

The Creek...

Smiddywesson's picture

Arch Duke,

I read the Alexander Green article on why investors should sell their gold.  Aside from the fact that the advice would have been wrong when given, the arguments still are unconvincing.  This is not the 70s or the 80s.  The currency is being destroyed and we cannot ever honor our debts. 

The arguments about "printing" not creating inflation are half right and half wrong.  The "printed" money went to the banks with the intention to keep that money off the streets and just in equities, where inflation could be created that benefited the banks, and only the banks.  Unfortunately, it still seeped out into the commodities market where we clearly do have inflation.  More importantly, worldwide inflation was created which has had a dramatic effect overseas.  This process is driving the price of gold.

I found the argument that it was worthless to compare gold prices of the past in today's dollars perplexing.  This is the only worthwhile method of comparing todays dollars. 

The problem with calling a top, whether in today's dollars or some other method, is the yardstick which we are measuring gold prices, the USD, is shrinking.    There is no top for gold until there is a stable currency.

Smiddywesson's picture

good article on the 5 places not to live after the collapse.  Best observation:

To sum up, those areas that have lived highest on the hog in the dollar paradigm will most likely be the worst places to live when the dollar collapses.