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

Sigh.....

 

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Still buying a couple once’s a month but have switched from buying coins to 1 OZ
pamp bars like this one they offer the best value from my LCS.

 

I recently picked up this 10 OZ version
as well

 

step on up JJ ....bout 24,000 large on the Bay.. NICE

 

Don’t forget about the tax ! though they have the selection I would have to really
want something to pay that, I am currently
looking for a 500 gram bar or half kilo since I live in Nevada there is no sales tax and
in California which I am only about 4 hours from there is no sales tax over $2,000 which gives me many options.

 

Probably will go even higher. I have 1300+ AV coins/ most are worth 10-50X gold content/ some 100X. But I collect not for the investment potential but FUN hobby gives me.

 

$2,485 up $18.....this is a multi-year move IMO where supply/demand fundamentals are somewhat like those seen in the early-1970's OR the early-2000's.

$3,000 by 2030 (very likely) and $5,000 by 2035 (possible) have been my mantra for a few years.

Still is.

 

Oh well.... back to the arithmetic pencil figuring with eraser calculation method....

 

Still think we can get 10% on average from equities? If so, putting that $2485 into equities today would get you (according to the first calculator I grabbed) $7090 in 2035, which would buy you over 1.4oz of gold at $5K. Just sayin'...

 

Oh, I don't recommend taking $$$ from equities -- or bonds -- for gold.

I just think that for those who want SOME exposure to gold or those who are coin collectors looking to complete collections or add coins....you should know that we are likely in a RISING gold environment for the next 5-7 years, if not more.

If a coin someone wants is largely based on the gold price -- even if there is a modest numismatic premium (say 25-100%) -- then that price is going higher.

Coins where the gold price is a minimal percentage -- like an MCMVII High Relief in AU or higher grade -- will only be modestly affected.

 

Inching up fast

 

I feel the value of gold is inversely proportional to that of the dollar itself so that when it goes up a little today what it really means is that your money buys a little less than it did yesterday.

They say that gold doesn't give returns. That's true enough but keeping in mind that the dollar is a depreciating asset not only means that having more of it as cash than you immediately need is a waste of money in a very literal sense but also, potentially, that even a low yield bearing bond or treasury note can earn you negative returns. Besides (some) crypto/real estate, gold is the only asset class that is inflation proof.

Rasiel

 

Have always been a big believer in GOLD
it is steadily moving up but that only means
I have to pay more for it..LOL

 

From RBC Capital Markets, Monday March 3rd:

Gold Strategy: Rally and Retreat.....We have been calling for some sort of consolidation, and last week’s pullback in gold prices fits with our view. Although gold is off to a strong start this week with investors eyeing the economic outlook and tariffs, we do think a lot is already priced in to gold as it remains around all -time highs. We generally are buyers on pullbacks for the purposes of strategic risk -overlay allocations and think that there will be more such opportunities to come. This most recent pullback was triggered by two primary factors in our view : profit -taking after gold hit new record highs and tariff-related macro shifts. While a strategy of strategically layering into gold on pullbacks makes sense, we suspect this will take time to play out over the course of the year.

 In terms of feedback, we’ve actually been surprised at the appreciation that consolidation is possible, especially given some of the lofty price targets out there. There are certainly bulls, but we sense a growing hesitancy around all -time highs and some admission that perhaps gold has gotten ahead of itself.

 Our conversations have centered on the difficulty of accurately modeling the admittedly nebulous factor of uncertainty, and that exhaustion may at some point take hold and present opportunities to layer into gold at better prices.

 Generally, we do not get the sense that investors are eager to chase gold higher without reason , especially when it’s at all -time highs, but that there is some fear of missing out.

 Given our view, it’s important to check in on the pillars of our call and some of the reasons why we think gold prices have understandably gotten ahead of themselves (in our view). Of the three pillars to our current view — uncertainty, central bank interest, and investor flows — it is the former two that have largely driven the rally year -to -date and are quite priced in. The undercurrent of central bank interest has continued, with uncertainty leading to outsized price outcomes – at least to our eye.

 Investors , meanwhile , have partially come back , with the recent jump in inflows into ETP showing investors finally coming to the party and pushing total gold -backed ETPs to early 2024 levels in tonnage terms. Yet, we are well off the levels seen in 2022, and we recognize that there is a lot of work to be done over the course of the year to keep gold prices supported in this respect.

 

I like GOLD either way and will continue to invest, seems like were playing ping pong in the $2,900 range which direction it will go next is anybody guess.