This page has been archived and commenting is disabled.

Roubini's Bearish Forecast Is Bullish For Gold

Tyler Durden's picture




 

From GoldCore

Roubini's Bearish Forecast Is Bullish For Gold

Gold’s London AM fix this morning was USD 1,722.00, GBP 1,095.98, and EUR 1,310.30 per ounce.

Yesterday's AM fix was USD 1,713.00, GBP 1,091.10, and EUR 1,300.59 per ounce.

In Asia this morning gold fell from its seven week high as traders took profits ahead of US Gross Domestic Product data to be released later today (1.30GMT).  Gold investors were happy with the Fed's decision to keep interest rates low, but now the focus will again be on the eurozone and hopes for a solution to Greece's debt debacle.

Gold will still be supported by central banks who add to their reserves, plus strong Asian interest from investors and consumers.

Gold rallied to $1,729.76 on Thursday, its strongest since December, but was still well below the record of $1,920 reached in September 2011.  Silver is on track for nearly a 20% rise this January, its biggest gain since last April.

Economist, Nouriel Roubini, who predicted the 2008 financial crisis, outlined the following predictions at a conference in NYC on Jan. 19th.   He said, “Rising commodity prices, uncertainty in the Middle East, the spreading European debt crisis, increased frequency of “extreme weather events” and U.S. fiscal issues are “persistent” problems that will continue to spur market volatility and sway asset prices in the global economy.

This is great news for gold. Goldman Sachs noted in a report on Jan. 13th that futures will advance to $1,940 an ounce in 12 months.  Morgan Stanley forecasts the yellow metal will climb to a record of $2,175 by 2013, said analysts Peter Richardson and Joel Crane in their research report.

Futures for February delivery rose 2.1% to $1,700.10 today on the Comex in New York. This is the  highest closing price seen since early December.  

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

NEWS
(Reuters)
Gold dips after rally; heads for fourth week of gains

(Bloomberg)
Gold Proves Safest as Goldman Forecasts Record: Riskless Return

(Reuters)
Gold eases off highs to end flat

COMMENTARY
(Barron's)
Hedge Fund Guru Sees Gold Price Soaring

(FirstPost.Economy)
Will gold extend its gains for 12th straight year?

(ZeroHedge)
Guest Post: Gold Bonds: Averting Financial Armageddon

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/27/2012 - 07:52 | 2101973 Snakeeyes
Snakeeyes's picture

Roubini is right. While ECB policies are helping Italy borrow, Greece and Spain are sucking wind!

Spanish Unemployment Rises to 22.9%, Greece “Close” to Deal, Italy Lowers Borrowing Costs

http://confoundedinterest.wordpress.com/2012/01/27/spanish-unemployment-rises-to-22-9-greece-close-to-deal/

Fri, 01/27/2012 - 08:52 | 2102036 GetZeeGold
GetZeeGold's picture

 

 

 

All roads are leading to gold these days........deal with it.

 

 

Fri, 01/27/2012 - 09:04 | 2102062 LowProfile
LowProfile's picture

I love how Roubini is now also an expert meteorologist.

What a fuckin' idiot.

Fri, 01/27/2012 - 09:34 | 2102126 GetZeeGold
GetZeeGold's picture

 

 

I hear Roubini is 10 feet tall....and flames shoot out of his arse.

 

 

Fri, 01/27/2012 - 07:53 | 2101974 GenXer
GenXer's picture

Bullish

Fri, 01/27/2012 - 07:54 | 2101975 achmachat
achmachat's picture

Are there any references as to whenever these analysts talk about "gold" they actually mean real physical gold?
It would sure make a huge difference.
We've come to a point where you can't compare paper and the real thing anymore.

Fri, 01/27/2012 - 08:54 | 2102043 Snidley Whipsnae
Snidley Whipsnae's picture

achmachat... "We've come to a point where you can't compare paper and the real thing anymore."

....................................

A divergence of paper prices set on CRIMEX, LBMA, etc, vs physical prices is what central bankers are terrified of.

The best outcome that central banks can acheive now is a managed rise in the price of paper gold through manipulations at the metals exchanges. If the CBs did not allow gold to rise to some degree there would have been a divergence in the paper and physical prices long ago. iows, the CBs are trying for an orderly retreat instead of an all out rout of their fiat.

After the MF Global debacle there will be fewer investors believing that their paper gold is as good as physical held in possession. MF Global caused a lot of big investors to attempt to cut deals with the miners/refiners directly and avoid the metals exchanges altogether, and there are at minimum two ways to look at this new trend:

1) we don't know what actual price the big buyers are paying the miners/refiners so this is not a price discovery mechanisim.

2) with fewer big long players on the CRIMEX, LBMA, the manipulators can move the PM mkts with less fiat dollars.

We really need PAGE or some other physical only market for price discovery of physical PMs for the small to medium size investors. Page would not be fool proof because central banks could still dump some of their physical into the physical only exchange and cause price volatility... but, how much dumping can CBs do when they are printing fiat without limit and do not know the fiat collapse limit;ie, hyperinflation... a lot of cb gold dumping will mean CBs will not have enough gold to introduce a 'new gold backed currency' when the fiat collapse happens. The CBs are resisting an inventory of their physical PMs to prevent a run on physical PMs by the fiat that they created... irony of their own making.

 

Fri, 01/27/2012 - 09:55 | 2102198 Badabing
Badabing's picture

"After the MF Global debacle there will be fewer investors believing that their paper gold is as good as physical held in possession. MF Global caused a lot of big investors to attempt to cut deals with the miners/refiners directly and avoid the metals exchanges altogether, and there are at minimum two ways to look at this new trend:"

The buzz recently, has been that gold buying by the big players, has bypassed the comex and London exchange and gone directly to the miners.

If true the only way to keep the gold Ponzi going is for the nationalization of the mining industry and channeling the physical gold through the exchanges delivery system. But the bankster/gov./PTB will make the best of a dire situation and pump and dump before the move to  nationalization of the mining industry. I’ve been watching the gold bug index for many years and always wondered why the HUI/GBI didn’t follow the gold market for the last four years.

Something evil this way comes.

 

http://finance.yahoo.com/q/bc?s=%5EHUI+Basic+Chart&t=5d

http://www.zerohedge.com/news/guest-post-gold-bonds-averting-financial-armageddon

http://seekingalpha.com/article/321558-insiders-selling-mines-management?source=yahoo

 

 

Fri, 01/27/2012 - 10:15 | 2102273 Snidley Whipsnae
Snidley Whipsnae's picture

Badabing... " I’ve been watching the gold bug index for many years and always wondered why the HUI/GBI didn’t follow the gold market for the last four years."

....................................

Many have commented on the lack of interest in mining stocks. Most that I have heard attribute this to the proliferation of mining related ETFs, which the commenters say has given investors an alternative to the stocks and a better risk/reward profile.

I have absolutely no opinion on this subject nor do I own any ETFs or miners. Long ago I dabbled in a few mining stocks...long ago... mid 60s.

Then I decided that slow accumulation of PMs was the best way for me to proceed. I am not unhappy about the decision... the wife was, at first... but now she is glad we did what we did.

 

 

Fri, 01/27/2012 - 11:24 | 2102507 Snidley Whipsnae
Snidley Whipsnae's picture

Badabing... I have several boats and most are not in the US. The one US boat I owned did sink... somewhere in the Great Lakes on a dark and stormy night.

Good luck to us.

Fri, 01/27/2012 - 11:57 | 2102612 Badabing
Badabing's picture

I now have a 30’ Erickson sloop with Yanmar power solar you name it.

Good bug out boat in new England waters.

Fri, 01/27/2012 - 11:45 | 2102569 DosZap
DosZap's picture

Badbing,

The buzz recently, has been that gold buying by the big players, has bypassed the comex and London exchange and gone directly to the miners

 

After MF Global, I think anyone trusting any entity with their cash for future Au, is an idiot.

Miners are just as apt to pull an MFG as MFG, maybe more so.

IMHO.

Fri, 01/27/2012 - 11:53 | 2102597 Badabing
Badabing's picture

A little misundestanding:

The buzz recently, has been that gold buying by the big players, has bypassed the comex and London exchange and gone directly to the miners, (For physical gold.)

Fixed it

Fri, 01/27/2012 - 11:35 | 2102540 DosZap
DosZap's picture

Snidely,

Page would not be fool proof because central banks could still dump some of their physical into the physical only exchange and cause price volatility...

That would be easy to stop, Disallow CB's from even particpating in the PAGE.We know their tricks, so set it up to stop the tomfoolery.

Fri, 01/27/2012 - 07:58 | 2101981 Irish66
Irish66's picture

How is Portugal this morning?

Fri, 01/27/2012 - 08:03 | 2101986 smlbizman
smlbizman's picture

ot....but has ron paul dropped out of the race...for some reason none of my loyal news shows are mentioning him...

Fri, 01/27/2012 - 08:56 | 2102048 Hobbleknee
Hobbleknee's picture

Don't joke like that.

Fri, 01/27/2012 - 10:35 | 2102342 trav7777
trav7777's picture

he's already lost, what difference would it make now?

Fri, 01/27/2012 - 08:01 | 2101983 LookingWithAmazement
LookingWithAmazement's picture

US economy grows. What crisis?

Fri, 01/27/2012 - 08:07 | 2101996 EscapeKey
EscapeKey's picture

The printing industry in particular.

Fri, 01/27/2012 - 08:54 | 2102040 GetZeeGold
GetZeeGold's picture

 

 

If you're gonna print.....print big!

 

Paging Rick Masters....if you get that reference....you get a lollypop.

 

 

 

Fri, 01/27/2012 - 09:07 | 2102066 Snidley Whipsnae
Snidley Whipsnae's picture

Ah... life and death in LA... Or, how I made a pile of money...literally. Good flick. Really sheds light on how half smart cops seldom catch the ONE...and without snitches they wouldn't catch anyone but jaywalkers, DUIs, etc.

Also, sans rats, govs could not suppress their constituents. See STAZI for more details. Human nature is the same at the top of the criminal ladder as at the bottom.

 

Fri, 01/27/2012 - 09:37 | 2102129 GetZeeGold
GetZeeGold's picture

 

 

One lollypop......coming right up.

 

You're right about them not catching the ONE.....Jon Corzine is still walking free.

 

 

 

 

Fri, 01/27/2012 - 09:52 | 2102182 Snidley Whipsnae
Snidley Whipsnae's picture

Lest we not forget... Rick Masters was ratted out by his own attorney. We can hope the same happens to Corzine.

But, even so, the 'justice dept' wouldn't do a damn thing about it.

TBTF = TBTP... to big to prosecute. Corzine knows too much about too many other pols/crooks/bankers... Corzine should avoid canoes...remember William Colby's demise?

Fri, 01/27/2012 - 10:00 | 2102211 GetZeeGold
GetZeeGold's picture

 

 

Reminds me of the following line from the Godfather......why take a risk?

 

No worries....I'm sure Jon has taken out a platinum insurance policy.

 

 

Fri, 01/27/2012 - 10:19 | 2102287 Snidley Whipsnae
Snidley Whipsnae's picture

Insurance is great for the heirs, doesn't do a damn thing for the deceased. :)

Fri, 01/27/2012 - 08:02 | 2101984 GeneMarchbanks
GeneMarchbanks's picture

Nouriel smokes Salvia.

Fri, 01/27/2012 - 08:05 | 2101990 kito
kito's picture

Are you kidding me?!? I'm supposed to believe in gold's future based on roubini, gs and ms???!! Really??? And this article doesn't fall under satire?!?!! Why is it that when it comes to gold, we have to accept the zh pariahs' word?

Fri, 01/27/2012 - 08:06 | 2101993 EscapeKey
EscapeKey's picture

Who says you have to accept anyone's word?

DYODD.

Fri, 01/27/2012 - 10:47 | 2102386 Badabing
Badabing's picture

Have you noticed Million Dollar Boner hasn’t commented. Cant go against his overlords.

Fri, 01/27/2012 - 08:05 | 2101991 EscapeKey
EscapeKey's picture

increased frequency of “extreme weather events”

Definietely bullish. More things to blame poor performance on.

Fri, 01/27/2012 - 08:06 | 2101992 TuesdayBen
TuesdayBen's picture

So Roubini's a warmer! I'm shocked.

Fri, 01/27/2012 - 08:07 | 2101994 new game
new game's picture

i don't care for the gent, but most of what he speaks is right on.

so keeping it simple; add pm on any sort of pull back and look fwd to 20 plus percent gains with virtually zero downside risk

JMFO

Fri, 01/27/2012 - 08:25 | 2102016 PaperBear
PaperBear's picture

I am sure that Roubini is stacking gold/silver.

Fri, 01/27/2012 - 08:30 | 2102021 youngman
youngman's picture

Extreme Weather events...how do you invest for that????  Or is that a TV show....

Got my big black rubber boots...check...got my slicker on..check...wheres my sheep........

Fri, 01/27/2012 - 08:59 | 2102044 Hobbleknee
Hobbleknee's picture

Here you go, you can trade hurricanes: http://www.cmegroup.com/trading/weather/index.html

 

___________________________________

/mike

compare gold and silver prices

Fri, 01/27/2012 - 09:30 | 2102115 freakscene
freakscene's picture

"how do you invest for that????"

Lowes, Home Depot, or other construction companies

 

Fri, 01/27/2012 - 08:36 | 2102026 PORTA PORTA
PORTA PORTA's picture

PLZ READ THE "NEW PROGRAM - LIST OF ACTIONS FOR HELLAS " 

AS GIVEN BY TROICA... IN ENGLISH TI THE GREEK PARLIAMENT... IN ENGLISH !!!

 

http://www.scribd.com/doc/79572454/HELLAS-Greece-List-of-Actions-23-JAN-2012-PP

 

Roubini n Soros an some Columbia Un guys.. ARE BEST FRIENDS with Papandreou !!... not by chance.-

Since Roubini was/is a consultant to Papandreou, and Soros has visited Greece 3 times since 2009 - before the elections.. before the Loan Facility..

Also Dominic was meeting Papandeou before the Loan Facility during Fall 2009 -LF which was signed May 2010- 

here is the Video od Dominic, admitting PRIVATE discussions with Papandreou at that time...

DOES this VIDEO CONFESSION CONSTITUTE VIOLATION OF SECURITIES ACT 1933 ?? - YES for both !

BOTH SHOULD BE ARRESTED THE TIME THEY STEP ON US SOIL.

WATCH THE VIDEO - INTERVIEW BY CANAL +

http://www.youtube.com/watch?v=vIsvVZl16VA   0:44'' ...!

 

PP

Fri, 01/27/2012 - 08:57 | 2102049 Nacho Libre III
Nacho Libre III's picture

Funny how roubini gets bashed endlessly for having called gold a barbarous relic yet now he is credible enough to get pulled into the fray by a pm shill?

Fri, 01/27/2012 - 10:07 | 2102247 EscapeKey
EscapeKey's picture

Roubini gets bashed for insisting that "gold going to $1,500 or even $2,000 is just ridiculous", and sticking to it.

Fri, 01/27/2012 - 09:31 | 2102119 Aquarius
Aquarius's picture

I fully support the future personal survival hedge as Gold and Silver, always have - However, I don't need that institutional Roubini to now tell me, when not that long ago he was misquoting Keynes about Gold being a "barbarous relic", that Gold and Silver is the go - what a hypocrite and pseudo academic.

Keynes was specifically refering to the corrupted US Gold standard and not Gold itself.

Roubini has as little integrity as Krugman but far more than Summers (vegatarian sharks, all) : Alas Summers is back in Obama WH / WB control - Halleluyah and wankydoo-doo. Expect Gold and Silver to soar.

Fri, 01/27/2012 - 10:14 | 2102272 MFL8240
MFL8240's picture

The mad professor is a fuckin clown!

Fri, 01/27/2012 - 10:28 | 2102316 GetZeeGold
GetZeeGold's picture

 

Yeah...but he can make bitchin balloon figures....and he wears the funny shoes. What's not to like?

 

 

 

 

Fri, 01/27/2012 - 10:39 | 2102351 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Did The Man expalin why all the Central Banks are fighting each other for gold...invading countries for their oil and gold...?

If it ain't important, why are they so desperate to accumulate/control more of these commodities?

Das sind einen guten Fragen.

Fri, 04/06/2012 - 03:00 | 2321441 kevin22
kevin22's picture

Inventure India is a management consulting firm has an unparalleled depth of knowledge and resources combined with functional and industry expertise for geographical reach. We help leaders make distinctive, lasting and substantial enhancement to the performance of their organizations.

Business opportunities in india

Best franchise

Franchise reports

Investment outside india

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