GOLD IS GOING TO “SUPER SPIKE” IN 2010
16 December 2009 by TPC
18 Comments
Gold has one more super spike left, to above $1,300 in the first-half of 2010, before losing its luster, says Al Abaroa, commodity strategist from Options Pro Corp, speaking to CNBC’s Lisa Oake and Sri Jegarajah. Abaroa also gives his take on natural gas and the agricultural sector.
just another wall street guy that doesn’t realize this isn’t “just a recession”
and our last remaining large manufacturing sector(housing) will never in my lifetime come back.
and that the housing bubble turned to credit bubble turned to national debt bubblewill turn to currency bubble………..reads “buy very long gold”
Anonymous Reply:
December 17th, 2009 at 6:59 AM
Absolutely Boatman, well put!, the only thing that will save the currency is go back to the gold standard.
Never, ever believe these people on CNBC. I learned my lesson in 1998, when oil was $11/barrell – an oil spokesman came on CNBC and announced to the world that “oil was going to single figures and will stay there for years.” Not long later it was back to $25. I have no doubt he was long oil and was trying to add to his positions. Trust NO-ONE.
Tomorrow we shall read the opposite !
cnbc is nothing more than entertainment or background noise at best. Should anyone base an investment decision on their anchors or analysts could be committing financial suicide. Please acknowledge them for what they are, reporters of events that have already occurred.
Dave Reply:
December 17th, 2009 at 9:41 PM
reporters of events that have already occurred
Sometimes.
Why does anyone even listen to these guys?
They are clueless; they’ve been wrong every step of the way.
They cannot see the forest for the trees, and cannot imagine that we’re in totally unknown territory, with a collapsing economy and a lying government throwing out phony-baloney “happy talk” backed up by false statistics on unemployment, GDP, and price inflation.
They see gold as a barbaric relic, not as the basis of sound money.
When the dollar becomes low-grade toilet paper or kindling, and people are using gold & silver to barter (or even as the basis for new local or regional money), what will the talking heads be saying? Will anyone care?
Guys like Peter Schiff, Darryl Robert Schoon, Jim Willie, and Gerald Celente—who have proven track records—are either ignored or aired as the nutcase counterpoints to the happy talkers.
It bothers me that these CNBC morons are causing a lot of people to not take wise steps to protect themselves.
Gold is definitely going to keep falling and all of you goldbug losers will get killed again just like in 1980. Gold is only a buy at extreme low levels, like in 1999 and 2000. Only the idiots buy it at the top. Hard to believe everyone wants to buy it at these price levels. Buy low sell high. I am selling gold and shorting it as it comes back down to below $900 an ounce.
anish poojara Reply:
December 19th, 2009 at 6:19 AM
Take care. I hope you have deep pockets.
Gold’s going to spike in late Feb/early March 2010 when ARM loans readjust & 50% of Americans walk away from their mortgages sending an earthquake thru the financials via CDO’s/CDS’s. Everyone will run to solid money & away from fiat money around the globe. I predict $8,000 gold per ounce in March 2010. Buy now. Later, ride the next spike in oil to occur in one to two years. You’ll be rich and you won’t be dependent on paper money during the huge devaluation of currencies to come. After that, invest in agriculture. Everyone has to have food & prices in food will skyrocket. I know most will scoff at my gold prediction, but simply put, when currencies fall, gold rises. Once the dollar breaks .75 there is no more support & it could plunge deeply. Add in bad real estate and you have a depression not just a recession. Bernanke has crushed the dollar. Right now, the rally is a blip and will sucker many into thinking it is safe. There is no safety in the dollar or in Treasuries. If you cling to dollars, you will go down with the ship.
anish poojara Reply:
December 19th, 2009 at 6:22 AM
Even if the US$ stays where it is just imagine what the price of gold will be when 1.3 billion Chinese buy 10 oz each
Does anybody have any real facts and figures – in the end the numbers always tell the story.
Jim Lorenz Reply:
December 27th, 2009 at 3:10 PM
For some vital facts on gold & silver vs. money substitutes see
http://www.runtogold.com Study the inverted value pyramid. Read some stuff by Trace Mayer, J.D.
Gold will go up very little in 2010, it is close to a peak. The dollar is already being rescued, as it went up about 20% recently. Some very well known super smart investors have gone long in the dolar. Ownly fools watch CNBC, I learned over 10 years ago, that Bloomberg is a much better financial news outlet.
Anyone that thinks the run of gold is near its’ peak has simply not kept their eyes on the bouncing ball. What little good news we hear is government orchestrated and pure BS at best. The printing presses run “round the clock” and housing is still in very, very, bad shape, with more bad news to come. Unfortunately, DEBT rules in the United States and going long the dollar at this point in time is suicide. The value of gold (more the dollar going down) will have the yellow metal surging much higher. I don’t agree with the $8000.00 figure put forth earlier, but it will be much higher over the long haul. Volatility in gold short term means nothing. Watch what occurs long term and I truly hope for everyone, that they at least make gold 1/3 of their portfolios.
I believe, with fits and starts, gold will decrease and stabilize around $900. A wealthy friend told me to short gold a couple of days ago. Many indicators are pointing toward a recovering economy. There will be some inflation but improving unemployment while the gears of the free market begin to grind in a self sustaining way is the priority. We will get through the debt. The U.S. has 5% of the global population but is responsible for approx. 25% of World GDP. Who is ready to step up to provide the reserve currency? No one. We were all smashed.
Our current crisis was obviously an inevitable correction. Gold, which is of psychologic value, escalated rapidly. Do you want to be highly leveraged in material purchased out of the fear of a complete global economic collapse? We cannot predict future foreclosures due to ARM loans. We cannot predict a collapse of corporate real estate. I did not predict the widespread reach of mortgage backed securities and its global implications. I did not predict positive economic indicators would emerge so rapidly. TARP loan repayment with profit so quickly; missed that as well. My predictive ability is not good. I have more questions than answers, generally an attribute which helps one come to a more complete decision. I approach the monster with humility.
Technology is advancing at an ever more rapid rate giving more areas to create wealth and preserve capital. The U.S currently has more pending patents on both nanotechnology and biotechnology than the next 13 countries combined. Global economics will expand in ways we have not imagined providing opportunities to grow capital via investment. Gold is of psychologic value but its value to mankind is a fraction of its selling price. If nothing else I certainly would not be purchasing over 1K per ounce. I would also get bullion that you can see, hold and store.
Weaving into ever expanding technology is silver. The batteries of the future will likely be rechargible silver oxide-zinc. these hold a charge 30% longer than lithium ion or the same power but 30% smaller. The technology still has tremendous room for development. It has medical uses as a bacteriostatic agent. Solar panels currently employ a paste using silver and industry uses silver as a catalyst for multiple diverse chemical reactions. In order of electrical conduction it is silver then copper then gold.
The increasing number of increasingly complex machines and as well as a large upgrade in the delivery of electricity will give silver not only psychologic value but industrial value.
You can get a 10 oz bar of silver for about $185-200. This is accessible and should have more room to go up. A “silver Streaming” company named Silver Wheaton
has been recommended by more than one commodities investor, One calling it the
“best Company in the World” the other having 25% of the assets of one portfolio (Steven Leeb- Million dollar portfolio) in this venture.
I am buying silver slowly in bullion. Be optimistic. Our drive to advance coupled with the tools of technology point toward an improving economic outlook. Industry will emerge from ideas that have yet to be imagined. Although criticized, our Presidential leadership, I believe, will have a tremendously positive historical review. In case you havent noticed, the guy is a genius whose ideas emerge from a deeply moral base. As a published author of 3 books and the depth of philosophic work in the speech, his words During the Nobel ceremonies were likely no more than reviewed by speech writers. If you hate the guy nothing will help you see good in him. If you have not read or listened to this speech it is a must.
Peace be with you and check out z-power batteries for silver and Thermafreeze as a cooling technology that no one sees coming. I plan to use a proshares etf to begin shorting gold, this is risky however, so I will not go big.
Alton
abephroeman Reply:
December 28th, 2009 at 2:49 AM
Alton – I can’t agree with you on gold at all and true recovery is so very far down the road. The government is out of ammunition, at least anything of consequence. Where does the debt level go from here? If you look at the present debt level and compute that to the populace, you’re looking at $40K dollars of debt for every man, woman, and child in the United States. The dollar has no place to go but down at this point (present fool’s rally aside) and as THE world currency it is in a perilous position at best. On the other hand, I must agree with you on silver and though not mentioned previously, I purchase 5 to 10 one hundred ounce bars on each substantial dip. Silver is on a long-term upward path. As to Silver Wheaton, I also agree and presently (and for quite some time), have had a strong position. Lastly, as to the President, hate is a word I never use to describe my feelings toward anyone. I do think, however, that the President is on the wrong road and I see severe consequences coming that will dwarf what we’ve already seen. You simply can’t buy your way to a better economy and that is just one of many mistakes unfolding at the present time. Pumping more money into the system will fail miserably. Be long gold, SILVER, and agriculture and you just can’t go wrong.
Regards,
ABE
alton Reply:
December 28th, 2009 at 4:06 PM
Abe,
Thoughtful reply, thank you.
It is hard to disagree with a guy who has been nailing the silver and obviously you have done well with your capital.
I do disagree on the concept of holding back stimulus or that tightening of spending will create a better economic outcome. Even Krugman stated that the best person to handle the navigation of our economic system is Bernanke.
Friedman reportedly stated that, in a severe recession, even if money were to be buried and people were to go to work digging it out of the ground, it would be better than decreasing capital flow.
In terms of GDP vs debt we are quite high on the chart. The point is that without stimulus unemployment will not stabalize. With increasing unemployment there is less tax revenue while the continued reprocutions of unemployment including increased poverty will create a perpetuating negative drag. One out of 7 families is having difficulty putting food on the table. There is less surplus from Grocery stores secondary to better ordering and accounting from the checkout machines. Foodbanks need funding.
It is a fools market if a double dip occurs. I am concerned about this problem but it is more likely to occur if the economic life support is withdrawn. The quality of spending on stimulus must be thoughtful. Some is going out as grants to support development of technology to clean coal (general concept to use pure oxygen for combustion as opposed to Ambient air. Wouldnt like to be the first dude to crank it up). There are hopefully many such projects occurring which will create exportable technology.
Long on gold is not unreasonalbe. I think it will be very long, however. If you have been purchasing over the last several years then obviously you are not short on smart. As mentioned earlier I do not claim absolute knowledge. The concept of the rise of Gold based upon a downward economic outlook is shaky. Economist are not good at predicition. The number of interrelted variables that can bring the economy up or down will some day be better understood by utilizing Nash’s economic game theory and coupling it with the technology to crunch the numbers. Predictive models based upon the numerification of reality will be with us. A flawed version was used by AIG to think that 36 to 1 leveraging on condos in Destin was ok.
If you believe the government can do nothing right, our recent past has done very little to disprove your ideas.
It is possible, however, that the integration of technology into the flow of finances will help improve efficiency. Healthacre legislation will move capital gains from insurance companies to hospitals where greater investment and improvement in healthcare can occur. Possibly, by improving funding to early brain development, we can have more citizens emerge from poverty and become taxpayers instead of consuming tax dollars.
With all respect Abe, if you were to compare our holdings I am sure your investment savvy out trumps mine. I am glad you agree about the silver, it helps.
I would say that deficit spending to defray the ravages of increasing unemployment is what must be done. No one likes it. But no one is a free market capitalist when the food stops moving.
Tell me what you think, I do appreciate the discussion.
Regards,
Alton
MARKET QUOTES
THIS WEEKS MOST POPULAR STORIES
MARKET NEWS
© 2009 pragcap.com · Login.
Home · Advertise · Contact us · Disclaimer ·