The $ 1,000 gold fan club? Absolutely. And as far as fan clubs go, this is a membership swelling daily. There is no question that the number of analysts, the increase in gold $ 1,000 mark suddenly as often as Tom Brady touchdown passes to see. But whether these people are newcomers to the gold-train ride along, or were confident after year, it is remarkable how many analysts now see nothing but good for gold.
Here, for example, what a couple of $ 1,000Gold forecasters have to say ...
• The Falling Dow / Gold Ratio. The Dow / Gold ratio - the number of ounces it takes for a part of the Dow Jones Industrial Index declined to buy - from 42 in 2000 to almost 19 in 2007. "What's interesting," said analyst Marc Farber, "is that despite the recovery of the stock market since October 2002, the Dow / gold ratio declined further. Just for the holder of gold from the pot - the world's only honest currency because it can not be printed by someDishonest central banker - the Dow, even though they put more value in dollars, in gold terms has continued with the result that today "only" takes 20 ounces of gold to fall to buy a Dow Jones Industrial Average.
"Simply put, since 2000 gold at a much faster rate than the Dow Jones rose, and I would expect this outperformance continue for the next few years to" gold standard "holder in a position to a Dow Jones with just buying a ounce of gold.
"Well, youmight think I'm crazy (but) I am convinced that the Fed's monetary policy exponentially expanding wealth inequality and impoverishment of the majority of U.S. households, which will then lead to social unrest and protectionism, which will go to war, and the breakdown of the capitalist system.
"However, if you think that was in 1932 and 1980, it is indeed a buy Dow Jones Industrial Average, with only one ounce of gold, then maybe my views are rather conservative. Perhaps we shallto be able to buy, sometime in the future, one Dow Jones with just half an ounce of gold! "
In this sense, we could think Farber's in store for much more than $ 1,000 gold.
• In the year 1980 U.S. dollars is gold only at half price. John Hathaway, manager of Tocqueville Asset Management, believes $ 1,000 gold is not far off. "I do not think that taking it too. We must not forget, the year is $ 1980, gold is less than half the nominal price today.
"The differences between theAmount of paper that has been created since 1980, and the amount of gold that has been produced so far, is simply enormous. The ratio of financial assets to physical gold is at the lower end of the historical range. If you all the gold on the market to highlight that has ever been produced, which is a very conservative approach, and then take the valuation of all global equity markets and global bond markets, gold is all about 3%, compared with a figure in the middle of the 20 % range in 1980, thewas the beginning of the bull market in gold and the beginning of the bull market in financial assets.
"Gold is a good value, of course, at these prices, only on the basis of the considerations we have discussed. Even if you do not think worst-case results are in the cards, gold is still rare and hard to see to believe and I find these companies the hardest time trying to maintain production, let alone build for them. "
• Central Banks Abandon Control of Gold. Two Citigroup metalsAnalysts said that central banks the choice between a global recession and further "control" of gold.
The choice fell to ward off global recession concentrate.
"We believe that the policy resolution to expand the credit crisis in the form of a massive do 'expansive of salvation?" Take in a new cycle of global credit crisis and the creation of competitive devaluation of the currency, the gold was up to $ 1000 / oz or higher. "
• Slashing interest rates will only add fuel to theFire. Analyst John Ing believes $ 1,000 gold is just on the horizon. His reasoning? Bankers are by bullets when it comes to settling U.S. debt battles.
"Ironically, while it is a crisis of confidence in the credit markets, the world's abundance of liquidity due to the huge current account surpluses of China and other Asian countries and the Middle East," Ing said, "The problem is not the supply of surplus but the imbalance between short-and long-term,Term obligations of the largest debtor in the world and the United States. "
"As long as there is a lack of confidence in the short term, central banks were not with the dilemma of how to supply liquidity. Today, central banks continue to increase the money supply but the monetary aggregates were already growing double digits and they had little room for maneuver. What is likely, then a dramatic reduction in interest rates, which will be a short-term palliative. But that is notCorrection of imbalances. The central banks have tried to stabilize the global financial system by pumping huge amounts of liquidity into the markets. So far they have only treated the symptoms of the underlying crisis. The situation is even worse. "
• "Gold is the Purist Play against the dollar." As the former head of technical research at Citigroup does not predict gold heading to $ 1000, but up to $ 3000, it makes sense to pay much attention.
"Gold is the purestGame against the dollar, "said Louise Yamada, managing director of Yamada Technical Research Advisors. She predicted gold would surpass $ 730 on the way to up to $ 3000 within a decade.
• "still cheap compared to oil or base metals." Fat Prophets Australia's newsletter is another prominent member of the $ 1,000 gold fan club.
"We think the price could reach $ 850 per ounce by the end of the year, due to problems in the U.S. housing market," says senior equities analyst Greg Canavan."U.S. real estate was an accident waiting to happen. We have also forecast a possible price of $ 1000, and we would expect that in the first half of 2008.
"In the U.S. we expect further cuts in interest rates is. In Europe, the euro is stronger, with an impact on exports. It could lead to a slowdown there," he went on to say. "In Europe, the Bank of England said it would not be bailing out the lenders. But now it's been said that it has to do with it. Investors will recognize thatGold is a basic store of wealth. "
Canavan added: "They should be 10 percent of your portfolio in gold or gold stocks have. Furthermore, it is now significantly undervalued, it is more than just insurance. Although more than 20-year high, it is still cheap compared to oil and base metals. "
• World currencies are increasingly questioned. "James Turk in his Free Market Gold & Money Report thinks $ 1500 gold is possible.
"A blow-off leg in gold-seekingincreasingly likely, as soon as they approved $ 1000. Think about this for a moment. The dollar is now trading at record lows, with no bottom in sight. Commodity prices are soaring, with wheat at over $ 9 per bushel and crude oil looking increasingly supported well over $ 80 per barrel. Gold is rising against all currencies in the world, pointing out that Fiat national currencies supported by nothing more than promises of over-indebted governments increasingly questioned. Britain is experiencing the worldbiggest bank run since the 1930s. ... Let us mentally for the possibility that gold will be prepared for more than $ 1000 over the next few months, and then just keeps climbing up to a blow-off.
"How high?" A doubling of the price of gold has been in the blow-offs like this has happened, that I am describing, so $ 1,500 or more is not in question. "
So ... where are you with your investment? They rely on the overly worrisome, "paper" investments at a time when more and more people wantkeep something of real value in their hands? If that's the case - and even if you have never joined a fan club all your life - perhaps now is the perfect time to become a member of the $ 1,000 gold fan club.
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