Then $4500… and by that time I think the US bond market will explode.
The US passed the ‘fiscal cliff’ by making an agreement to raise taxes over 600 bn and cut spending $20 bn. Wow.
In two months the US has to raise the debt limit. The Limit is already reached but the Treasury is using side measures to cover the deficit till then. Supposedly they can make a new deal.
Given the fact that the US is the only major economy with any solvency left, even with our immediate national debt at $16 trillion, and a president who is determined to borrow as much as possible in is his remaining time (guy has no real knowledge of much of anything really) …that
The Gold price will ratchet up inexorably this year, I would be super surprised if it did not easily break $2000 a month or two after they automatically raise the debt limit for the US in two months. IN fact I think the gold price will break and hold $2000 and then immediately test $2500 for a time, before being beat back to the new low baseline, $2000, and during 2013, it will fluctuate between $2000 and let’s be a bit more generous $3000. (Really my estimate is 2000 t0 2500).
But my more generous estimate will be probable. The US fiscal situation is out of control. As I stated it’s the only major economy left with some credit.
Seriously. China. Laugh. They are fake, and have a banking system far worse than ours. Europe. Laugh. Need I say more?
Japan, laugh, they are on the verge of a bond crisis and using extraordinary measures now to fund their huge deficits, and have a trade collapse and are now even on the verge of saber rattling with China over those small insignificant islands.
And THEN, we talk the war potential in Asia over this and also the Mid-East. It’s an easy call to say that gold is headed really to more like double its present numbers. Over $3000.
And here I am including a chart of our calls in the last two years, take a look at the arrows, the arrows were where we called either tops or bottoms.
Those are some incredible calls.
Stop by and have a look at our futuristic and gold site. We are a partially tech oriented investing site, and we believe that although the bean counters (bond traders) know the mathematical end of the currencies and how gold will spike, they do not understand tech. They are MBAs who have a frankly only an algebra level of understanding of tech, and we are looking for other avenues to protect your savings than just dealing with the bean counter mentality. Of course gold figures but we also feel the bean counters, while they will lose their asses, and are trading on distressed debt will miss the big coming chances to protect your money – tech.
Chris Laird Editor
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