Corvette Forum : DigitalCorvettes.com Corvette Forums banner

1 - 9 of 9 Posts

·
Banned
Joined
·
31,366 Posts
Discussion Starter · #1 ·
An exhaustive report by Standard Chartered predicts that gold [GCCV1 1524.20 8.60 (+0.57%) ] will more than triple to $5,000 an ounce because of a lack of supply, not just because of a surge in demand that most bullion bugs cite in their bullish calls.

“There are very few large gold mines set to commence operation in the next five years,” said Standard’s analyst Yan Chen in a report Monday. “The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold. The result, in our view, will be a gold market in deficit, even assuming flat growth in demand. With the supply-demand balance so out of kilter, we see the gold price potentially going to US$5,000/oz.”

The London-based firm is among the first to focus on the supply-side of the gold equation amid the many bullish forecasts out there on the metal. After analyzing 345 gold mines and 30 copper/base metal gold mines around the globe, the team estimates annual gold production will be just 3.6 percent over the next five years.

“They make a pretty compelling argument, especially when it comes to mine supply,” said Brian Kelly, head of Brian Kelly Capital and a ‘Fast Money’ trader. “Most analysis focuses on demand from China and India, which of course can disappear as quickly as it materialized.”

But that’s unlikely to happen over the next five years as central banks look to further diversify their holdings of U.S. dollars and as emerging countries buy more gold in the aftermath of the global paper currency crisis.

“Currently, only 1.8 percent of China’s foreign exchange reserves is in gold,” wrote Chen and the Standard team in the 68-page report. “If the country were to bring this proportion in line with the global average of 11 percent, it would have to buy 6,000 more tonnes of gold, equivalent to more than 2 years of gold production.”

The bold call is among the most bullish out there. In a Bank of America/Merrill Lynch survey of global money managers released Tuesday, just about a third of money managers felt gold was overvalued. However, that is the highest reading in that survey in more than a year.

Standard Chartered recommends that clients buy shares of smaller gold miners to get the most upside from its prediction but also said clients could buy physical gold and gold exchange-traded funds.

http://www.cnbc.com/id/43396080
 

·
Registered
Joined
·
25,253 Posts
The question is, how much do you trust this article? If you really, really, really believe it, you would be a fool to have a penny of investment anywhere else.
 

·
Banned
Joined
·
31,366 Posts
Discussion Starter · #3 ·
The question is, how much do you trust this article? If you really, really, really believe it, you would be a fool to have a penny of investment anywhere else.
:laughing: I wonder if Wiener is going to drag these guys before congress..

Not a lot of "safe" long-term investments right now.
 

·
Registered
Joined
·
19,476 Posts
I think I'll take out a second mortgage on my home and invest it all in gold. :D
 

·
Registered
Joined
·
12,410 Posts
Wow...I hope that article's forecast bears out. I bought 6 troy lbs. when Glen Beck 'told' me too after I sold my house when it was just above $600 an ounce. Let's see...

6 troy lbs. = 72 troy ounces @ $612 per ounce = $44,064
6 troy lbs. = 72 troy ounces @ $5000 per ounce = $360,000.00!

So, if I listened to the 'pencil-necked geek' Weiner and not Beck and sold my gold, this pervert would have cost me $315,936...
so, let's see
Beck = + $315,936...
Weiner = - $315,936...

:laughing:
no wonder most democrats are poverty level!
 

·
Registered
Joined
·
19,914 Posts
The worldwide failures that would have to happen -and the failures worldwide that this would cause... are immeasurable. 5K per ounce would be meaningless... as the collapse of every currency, market and country would ensue prior to the mark.
 

·
Registered
Joined
·
16,300 Posts
Those Krugerrands I bought in 1980 and 1 oz Australian Nugget coins I bought in 1981 are looking better and better:excited:

:cheers:
 

·
Banned
Joined
·
31,366 Posts
Discussion Starter · #9 ·
The worldwide failures that would have to happen -and the failures worldwide that this would cause... are immeasurable. 5K per ounce would be meaningless... as the collapse of every currency, market and country would ensue prior to the mark.
Hmm, I remember reading the same thing 5 years ago, about $1500 an ounce.. :laughing:

Gold hasn't really moved on the supply/demand formula yet, so far the driving force has been the devaluation of the US dollar. If you want verification, look back and see what an ounce of gold would buy in 1980, compared to today. Probably not much difference. In the 50's, 2 silver dime would buy you a gallon of gas. Today, 2 silver dimes will buy you a gallon of gas. :huh:

:cheers:
 
1 - 9 of 9 Posts
Top