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Steve Herschbach

$1000 Gold Within A Year?

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"Gold, iron ore, soybeans and copper will probably drop at least 15 percent next year as commodities face increased downside risks even as economic growth in the U.S. accelerates, according to Goldman Sachs Group Inc."

http://www.bloomberg.com/news/2013-11-21/goldman-predicts-significant-losses-for-gold-iron-ore-in-2014.html

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$2,000 or $1,000 gold spot......To be, or, not to be.......might be the question. 

 

Miners at $2,000 spot were expanding and making capital improvements.  I really did like that period,  I hope it returns.

 

Miners at $1,000 spot will be closing down mines and curtailing exploration.  I'd like to avoid that.

 

To be a miner at $2,000 or not to be a miner at $1,000............

 

GS and the club of heavy hitters, play us with reckless abandon.

 

I'll quote John Oates..."I care not for the price of gold, I am a miner.....therefore I am."

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GS and the club of heavy hitters, play us with reckless abandon.

 

Uhhh speak for yourself there dude... who is this "us" you refer too? GS doesn't have jack on me. If you know how to play the options market it's real easy to front run GS. It pays to be nimble.

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Good one Gary,

 

Going forward you and I can be on opposite ends of the same teeter-totter.

 

I gather native gold and hoard it, never sell.  I trade my gold to cover expenses.

 

I'd never play games with gold like you do.

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I gather native gold and hoard it, never sell.  I trade my gold to cover expenses.

 

I'd never play games with gold like you do.

 

No games... it's called hedging. Farmers do it, the big miners do it, and oil producers do it. Pretty much anybody that harvests, mines, or drills a natural resource that is a traded commodity will hedge that resource against price fluctuations through futures and options contracts.

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Hello,

My $.02 worth.

Everything I have read regarding Goldman Sachs leads me to
believe GS never does anything that is not in its own self-interest to make
money for themselves. If GS is advising to sell pork bellies, it is because
they are buying and want you to sell (to them), thus helping maintain a liquid
market. They could be buying because GS analysts see a future bull market in
pork bellies and GS wants to acquire inventory, or pork bellies have retreated
from a recent high where short positions were established and now GS wants to
cover their shorts by inducing you to sell your inventory to them. It’s a very
dirty racket and nothing is as it seems.

Sincerely,

 

-C


 

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Steve, Ace here . It will be very interesting to see what happens. But it is the FED we need to watch. GS as Cochetopa says are using us to enrich themselves. The Fed and their QE3 scam is the real issue. They have created 2 Bubbles, the massive reinflation of the Stockmarket and pumping $$$ into Realestate market are creating that BUBBLE , that cannot last. All of this is devaluing our assets and labor  in the end.

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Perhaps a larger issues to consider on the future price of gold will be how much faster the Federal Gov. expands Socialism. What we considered normal trade with a Capitalist basis has now been transform in a Communist like Gov. controlled shell game. Our Gov. pour huge amounts of liquidity into any sector it see fit and for whatever reason it chooses. They could crash gold or make it go out of sight with just a flick of a button. GS and the FEDS all feed at the same place, your earnings. The system we have controlling our financial future has clearly established the new rules,, If you produce anything with labor or goods you will be punished and the more labor or goods you produce the more you will be punished with progressive taxes.    AND   If you choose to fail they will reward you. The more you fail the more they will reward you with someone else's labor and goods.   Maybe a few ups and downs for gold but for me I can't wait to trade some more Federal RES. Notes for gold.         

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My expectation for the future price of gold will try the patience of the most ardent gold bug:  I am looking for sideways to occasional sloppy up movement for a long time, two years to reach $1500, and two more years to hit $2000.

However, the gold/commodities pundit at this advisory service, http://www.moneyandmarkets.com believes gold remains in a bear market and wants to see a downward price spike both in gold stocks and the commodity that signals panic selling. The advisor says gold could rise to $1289 before resuming downward price action. He would like to see a drop to $1100 or below before he issues his advice to buy.


 

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If you watch and read the news, everything is going up. I predict $1900 gold by summers end and breaking thru to 2K by October. Forget ETFs and buy coinage. You better get to digging it up and hang onto it. It will takeoff as the meltdown approaches. Get ready.

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Don't forget about Golds little brother Silver..  When I was a kid working at a gas stations we sold full service gas for around $.25 to $.35 a gallon. So way back then in the 60's you could buy a gallon of gas for about one silver quarter. Well here we are 2014 and that same silver quarter will still buy you about a gallon of gas. Another interesting ratio on Gold and Silver. A $20 gold piece was about an oz. of gold and the Silver dollar was a little over 3/4 oz. So the ratio was about 15 oz. of Silver =ed about 1 oz. of gold. Today the ration is very different. It takes about 65 oz of Silver for the 1 oz of Gold. So if you go back to these ratios Gold would be about $350 oz  or if gold is correct silver would be $88 an oz.  Of course none of this makes any difference but to me I don't mind keeping some Silver in the can with the Gold. Small Silver coins may be very handy to buy yourself a loaf of bread some day.  

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Geowizard -

One would think  at $1300 per ounce gold we would have people jumping up and down and mining companies drilling everywhere. But it aint so. Instead, interest is at a low ebb. You'd think from the interest level gold had sunk to $500 an ounce. The price wont reach below $1,000 an ounce during the year since the first post of this thread as predicted, but the interest level in gold prospecting and mining exploration has gone down to that level. I talk to folks who sell commercial equipment to mining companies and for most the sales are way down. Exploration outfits who spend high risk money to drill cant afford to drill. When I was in Africa last time - a place where exciting new mines have been found recently - all the commercial drill rigs sat in the storage yards unused.

If you are in a situation where you don't need new money and you are set to go, then you may be just fine, but for many who need money, the price is still decent at $1300, but the interest in prospecting or investment is terrible at this time.

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You're right Chris,  interest is at a low.

 

My take is that the trend might not be my friend.  Are we gonna ever turn the bottom and head upwards?

 

Well that's a good question,  time has got to run it's course.  The bottom is where?

 

Until we define and set a bedrock bottom, the upside continues to look bleak.

 

I know the high of $2000 spot a while back had everybody's attention, but the forecasts of even higher fizzled.

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