$3,000 Gold Price Forecast from Merrill Lynch/BOA

Figured I wouuld create a master thread for gold research....here's a doozy, showing that the sell-side is now getting bullish on gold.

Merrill Lynch/BOA ups their gold price targets bigtime.

 

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Your attached file doesn't open for me. How about giving us a link to the article?
~ Chris

 

Chris, it's not an article, it's an actual PDF research report.

Anybody else having trouble bring it up ? Comes up for me.

You need Adobe Acrobat to read it.

 

Real Silver Price 2021.... 21.95.... works..it open 4 me.

 

The PDF article downloaded and loaded up just fine for me.

 

Chris, get Adobe Acrobat and if it doesn't come up I'll copy-and-paste key sections here.

 

I just wonder how long it will take the big money types to realize that all of the money being thrown at the economy right now will affect the long term value of the dollar.

 

The 'big money types' absolutely know this already. It's the consumer and 'little guy' receiving the handouts that will be hit over the head with a 2x4 when they need a wheelbarrow of cash for the loaf of bread.

 

It's not a dollar thing, EVERY country is stimulating. So on a relative basis, the dollar might even appreciate.

This is a shift to more currency and supplies kept at home...more gold...less reliance on globalization.

 

Trust me, the "big money types" are the LAST to know.

Little guys like you and me can pivot on a dime. Big Money types (except for some hedge funds) take MONTHS or QUARTERS to move.

So many people don't understand this. Just like the "rich not paying their fair share" of taxes malarkey.

 

The big money types was interpreted by me as individuals, not mutual funds or hedge funds, or investment managers. I was thinking more like Gates, Soros, Bezos, and their ilk. They know and couldn't care less.

 

I managed money for one of those names. I can assure you, they are NOT "in the know" and most of their wealth is concentrated in equities and very few ones at that.

 

Primer on Gold Stocks from ML-BOA:

 

Jeff Gundlach, a bond expert but savvy on all markets, just mused that we could see the reverse of the negative oil price fiasco we saw last week in the gold market.

Specifically, he asked what would happen if everyone demanded to take delivery of physical gold. Too many people apparently are "short" and this could lead to a TSLA-like short covering surge.

Interesting......

 

I've always find it interesting that you could buy "paper gold" anyway, given that there's nowhere near enough of the physical stuff to cover all of those claims.

 

Isn't it ironic that the 1929 crash was in large part due to people investing in 'paper companies'. Those were not Dunder Mifflin type paper companies. We're talking about companies that didn't exist. Just on paper. Shell companies so too speak.

 

I'm not an expert on this but a guy I know has written a book about this quandry: when the notional (face value) amount of something exceeds the actual supply.

We saw something of this in 2008-09 when the amount of credit default swaps (CDS) exceeded the amount of bonds at issue.

We just saw oil go negative, something I only saw written about in the last few weeks.

If we DO see a move to $3,000 gold, it's going to happen over like 2 weeks with a couple of $250 or $300 up days. There won't be a chance to get in and buy. Anything tied to gold -- generic bullion coins or semi-rares -- will be jacked up 3-4 times in 2 weeks.

If you have your coins, it's going to be F-U-N.....FUN. If not, after years of gold staying at $1,500 an ounce on average, you'll be hoping for a correction back to $2,500.

 

It was more speculating on margin. You only had to put up 10% to buy stocks.

Stocks simply got ahead of themselves. Same thing happened in 1987.

 

will you sell??

 

Asking me ? If gold hits $3,000 ?

Let's get there FIRST and then I'll think about it....