Category Archives: Commodities

I started to have close look at the gold price in 2005, and I have watched the price every day since that time. I am very excited about the gold price, and ask my self how high can the price go? You see; the gold price have always been a great hedge against the stockmarket.

Investors don`t like war, terrorism and chaos. The market have hugh challenges at the moment, and we live in a difficult time which is the most dangerous time in the capital history. We had the financial crises in 2008, but the market bouched back and we are at the ATH (all time high) levels again. What now?

There are two kinds of schools out there; one that don`t belive in gold and one that really belive in gold. The trading range for gold have now been between 1500 and 1700 area, but never breaking out to 1900.

The central bank has indicated that its current economic forecasts warrant policy rates remaining close to zero for at least another two years and that it stands ready to expand its balance sheet further if needed,” Goldman’s Garzarelli wrote. “We have built a third round of long-term asset purchases (‘QE3’) into our baseline, although that is, of course, contingent on sub-trend growth in the near term.

While Goldman Sachs did not discuss the implications of QE3 for the gold price in the report, history suggests it would be quite favorable for the price of gold. Richard Russell, a long-time gold bull and author of Dow Theory Letters, presented his case for higher gold prices.

“When chaos reigns, people look for certainty,” Richard Russell wrote in a recent letter. “When all is lost, only one item stands supreme and has been supreme for thousands of years. That item is gold…

Russell went on to say that “At $2,000, the next objective would be $2,500, and from there $5,000, and from $5,000 – $10,000. As gold marches higher, it’s playing the death knell for fiat money. And every central banker knows it.”

They talked about it on CNBC a few weeks ago. They say if bonds dropped, the stock market would start to increase. So far, that hasn`t happend. We are in a correction and people are worried about the sluggish economy, but here is the thing;

If people don`t feel confident about the stock and bond market, they should do only one thing:

Buy gold!

Not yet, because it takes some time for the goldprice to go up again after a correction, and many people are scared of gold. It is not so much action in the gold market now, but a year from now, people will probably buy gold like carzy.

In a world of international stability, a walking dead economy, and an overvalued stock market going nowhere gold will make more and more sense to investors as time goes on. People will see it as a safe haven. Especially when inflation explodes on us thanks to the deficits and QE bond buying programs – that now with another war have even less chance of coming to a real end.