Gold Seems to be a Matter of When
Monday, August 13, 2007 - FreeMarketNews.com
Ambrose Evans-Pritchard, International Business Editor of the UK's The Telegraph, predicts gold will exceed $2,000 per ounce, stating:"Gold will fly once investors can see that neither of the two reserve currency pillars (euro and dollar) is on a sound foundation, and once the pair are engaged in a beggar-thy-neighbor devaluation contest to stave off a slump (if necessary with the use of Ben Bernanke's helicopters, meaning mass purchase of Treasuries, mortgage bonds, stocks, or assets of any kind to support the markets). This would amount to a partial breakdown of the monetary system."We are not there yet. Timing is not my forté, but 2008 looks ripe. Watch the Spanish housing market. Watch the French trade data. Watch Chinese inflation. And, of course, watch the U.S. jobs market - the bogus prop to the alleged U.S. recovery."Could gold reach a price of $5,000 the ounce by 2010? Citing the tendency of the Dow Jones and Gold to occasionally trade at a ratio of 2:1,McEwen Capital Insite Publication says:"This ratio looks at how many ounces of gold it takes to purchase the Dow, assuming every point in the index represents a dollar. The ratio reflects the market's confidence in paper versus physical assets like gold. We believe this ratio will once again be 2:1. If this is correct and the Dow stays relatively flat, we could experience a gold ratio price of US$5,500 per ounce." Staff Reports - Free-Market News Network
Ambrose Evans-Pritchard, International Business Editor of the UK's The Telegraph, predicts gold will exceed $2,000 per ounce, stating:"Gold will fly once investors can see that neither of the two reserve currency pillars (euro and dollar) is on a sound foundation, and once the pair are engaged in a beggar-thy-neighbor devaluation contest to stave off a slump (if necessary with the use of Ben Bernanke's helicopters, meaning mass purchase of Treasuries, mortgage bonds, stocks, or assets of any kind to support the markets). This would amount to a partial breakdown of the monetary system."We are not there yet. Timing is not my forté, but 2008 looks ripe. Watch the Spanish housing market. Watch the French trade data. Watch Chinese inflation. And, of course, watch the U.S. jobs market - the bogus prop to the alleged U.S. recovery."Could gold reach a price of $5,000 the ounce by 2010? Citing the tendency of the Dow Jones and Gold to occasionally trade at a ratio of 2:1,McEwen Capital Insite Publication says:"This ratio looks at how many ounces of gold it takes to purchase the Dow, assuming every point in the index represents a dollar. The ratio reflects the market's confidence in paper versus physical assets like gold. We believe this ratio will once again be 2:1. If this is correct and the Dow stays relatively flat, we could experience a gold ratio price of US$5,500 per ounce." Staff Reports - Free-Market News Network
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