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USAGOLD
Newsgroup - Bullish fundamentals still favor gold
Clients
and Friends,
Our latest NewsGroup is a multi-media extravaganza of bullishness
featuring news, analysis, and two videos -- one by CNBC as well as one
your very own brokers right here at USAGOLD.
USAGOLD VideoBrief -- $2000 gold?
Citigroup's recent price projection analyzed. 3 December 2008
http://www.usagold.com/video/20081203.html
USAGOLD Comment: Citigroup
has projected that gold could reach $2000 in
the coming year, a figure that compares closely with the
inflation-adjusted high of 1980. Pete Grant and Jonathan Kosares make
further comparison of this dollar-denominated price against gold as
priced in many foreign currencies by which gold is currently testing all
time highs.
Low
interest rate policy by the Fed (and other CBs), combined with massive
injections of bailout liquidity and the monetizing of debt portend
further currency depreciation and monumental price inflation -- not only
in the U.S., but worldwide. The oil: gold and DOW: gold ratios are
discussed, as well as the negative real rates of return on low-yielding
Treasury bonds, all pointing the way toward the wise choice of physical
gold ownership for wealth preservation.
And here's an article regarding that forecast...
Citigroup says gold could rise above
$2,000 next year as world unravels
By Ambrose Evans-Pritchard, 27 November 2008
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3526645/
Citigroup-says-gold-could-rise-above-2000-next-year-as-world-unravels.html
Gold is poised for a dramatic surge and could blast through $2,000 an
ounce by the end of next year as central banks flood the world's
monetary system with liquidity, according to an internal client note
from the US bank Citigroup.
The bank said the damage caused by the financial excesses of the last
quarter century was forcing the world's authorities to take steps that
had never been tried before.
This gamble was likely to end in one of two extreme ways: with either a
resurgence of inflation; or a downward spiral into depression, civil
disorder, and possibly wars. Both outcomes will cause a rush for gold.
USAGOLD Comment: Citigroup
pulls no punches in making their bullish case for gold.
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Gold Will Rise to $2,000 by 2010
[video]
CNBC.com 3 December 2008
http://www.cnbc.com/id/28030936
The price of gold is set to rally to $2,000 per ounce next year as an
improvement in the economic outlook causes fear of inflation and
currency debasement, Philip Manduca, head of investment from ECU Group,
told CNBC.
"Gold will be going through $1,000 very shortly in 2009, and go
on to as high as $2,000 by 2010 and I'm very confident of those
predictions," Manduca told "Worldwide Exchange."
Dean Barber, founder & chief investment officer at Barber Financial
Group agreed with Manduca's predictions and said the entire commodity
space was set to do well next year.
USAGOLD Comment: As you'll
see (and hear) in this video-article,
Citigroup is certainly not alone in their bullishness for the future of
gold.
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Superfund says India plans on track;
gold to double
(Reuters) BANGALORE, 4 December 2008
"India as a country will emerge from the financial crisis as one of
the primary global superpowers," said Aaron Smith, a
Singapore-based managing director at Superfund
Smith said the country enjoys high savings rates and the average Indian
has low exposure to stocks and has traditionally owned gold, whose
prices he believes might double over the next two to three years.
"I see gold going to $1500 an ounce in two or three years and in
the long run even higher," Smith said.
Smith based the prediction on his view that the U.S. dollar could
potentially weaken sometime next year and on reports that China, which
is said to have 600 tons of gold reserves, is looking to increase these
reserves "dramatically."
USAGOLD Comment: Grant,
Kosares, Fitzpatrick at Citi, Manduca at ECU Group, Barber, and now
Smith... it looks like we've got a solid consensus brewing on a bright
future for gold looming just around the corner. As for that comment
about China looking to increase gold
reserves "dramatically", a 4000 tonne figure has previously
been put forth by Chinese sources. How serious are the Chinese? Have a
look at the next article bearing this in mind, and read between the
lines...
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China urges US to make sure Beijing's
investments are safe
BEIJING: 4 December 2008
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/394062/1/.html
China's top envoy to high-level economic talks with the United States
urged Washington Thursday to make sure Chinese investments in the US
economy were safe.
"We hope the US side will adopt every necessary measure to stabilize
its economy and financial markets and ensure the safety of China's
assets and investment in the United States," Vice Premier Wang
Qishan said.
China is spending a large part of its bulging trade surplus on buying US
government debt, but criticism is emerging in Chinese academic and
policy circles that this type of investment is not as safe as it used to
be.
USAGOLD Comment: Being
Washington's top creditor with a reported US$585 billion worth of
Treasuries, there seems very little doubt that a greater degree of
diversification is called for, and any given quantity of gold would
surely bear up better as the future unfolds than would a
similar value of dollar-denominated IOUs. The trick, of course, is
making meaningful progress toward that precious accumulation without
running the $/oz stratospheric in a very thinly supplied physical
marketplace.
---------------------------
From 'The Gilded Opinion'... The LAST
One: Elliot Wave Gold Update by Alf Field
25 November 2008
http://www.usagold.com/gildedopinion/alf_field.html
"I anticipated that the Big Kahuna [a major financial crisis] would
give rise to the risk of a systemic meltdown, which would result in the
authorities "throwing money at problems", bailing out all the
banks and large corporations that got into trouble. This would lead to
the destruction of the currency. I wrote about this in more detail in
[back] in April, 2005..."
"Why quit writing these reports?"
"I have noticed from the emails that I receive that many people are
using these reports to guide their trading activities in gold. I have
had no objection to this in the past, but feel that it would be foolish
to trade gold in the circumstances of the Big Kahuna crisis that we are
living though at the moment. It has become a question of individual
financial survival in an environment where things are happening more
rapidly and with increasing violence. I feel very strongly that it is
time to quietly hold onto one's gold insurance and not attempt to trade
it. I do not wish to provide interim levels that may cause people to be
encouraged to trade their gold to skim a few extra fiat dollars or other
currencies, but lose their gold as a result."
USAGOLD Comment: Alf
Field's forecasting on the gold market utilizing Elliot Wave Theory has
been consistently accurate since his first essay in 2003. In this, his
final essay, his Elliot Wave projections make our previous line-up of
gold bulls look like mere pikers. Would you believe
$10,000/oz as Field's conservative wave FIVE estimate? As always, we
invite you to read and contemplate the possibilities.
Until next time... don't be shy; stay in touch with your broker at
USAGOLD!
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