Gold will go down to $700 in the next 5 years?

Hey everybody! I came across this video online and I'd like to have your opinions on it. The guy being interview believes that gold is highly over speculated and therefore will go down to about $700 within the next 5 years. What do you all think and WHY?

http://video.foxbusiness.com/v/1889169928001/gold-headed-to-700-in-5-years/

 

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i dont think it will drop that significantly. i think its pretty well stuck where it is. it may bounce up and down a little bit but i couldnt see that happening.

 

But why? He gave a good reason as to why it would drop. I don't want to sell my gold just yet, but I need an equally good reason not to sell it.

 

there are people who believe the world will end in 2 months too. just because one person has a good idea about why it will drop doesnt mean it will. granted it would be nice to get a double eagle for 800 bucks i just dont see it happening any time soon

 

Sell half of it. You'll still have some if the price goes up.

 

I'd love that. I'd be able to buy some Eagles and Pandas I've been wanting, but with the interest in gold being so high and big buyers like China gobbling up everything they can see, I see demand being very high compared to supply.

 

Even the most profitable operations it costs around $800/oz to mine gold. Unless crude dips most mines' will shut down at those prices..

 

First of all, it is possible that gold will decline if the deflationary scenario he describes comes to pass. However, please note the following.

Chart Capital primarily relies on backtesting to make its forecasts, a technique pretty thoroughly discredited.
Yoni Jacobs indicates that the gold chart is parabolic, and it isn't.

The kid is obviously trying to make a name for himself with a bold call. If he is right, he will be another investment rock star. If he is wrong, nobody will remember in 5 years. It is incredibly dangerous to short an investment like the GDX before it begins to fall, and it is amateurish for him to recommend it.

 

He's a Short, those guys would say anything to get you to sell your shares hence the sky is falling speech. I Would like to know how he thinks gold will go down but diamonds will go up? For him to throw diamonds in the mix doesn't make any sense to me. Interesting speculation. Wonder what he has to say about silver, if he said silver was going to go back to $10 then I would consider him just plain nutz!LOL

 

Simply stated, there is more gold presently being used in electronic production then is comming out of the ground each year. As this has been going on already for over 5 years, i can't see the price of gold dropping anytime soon. Unless you all want to give up your cell phone and ipads

 

The trouble with shorts is that IF the market goes against you, it commonly crashes hard which eats you up if you put limits on it to automatically sell at a certain level, or margins and expiration point ( if options) way down in valuecan leave you owing your broker way more than you put in the game.

Of course if you win, you can leverage big depending on yourexpectations.

If someone really KNEW ( in their mind) what was coming, why tell other strangers. That would affect the outcome. Just win and then give them some money.

 

Re: "If someone really KNEW ( in their mind) what was coming, why tell other strangers. That would affect the outcome. Just win and then give them some money."

THAT'S EXACTLY RIGHT! I didn't even have to watch the video to know what he is trying to do. I've been listening to nutz like this for years. REMEMBER, the PM market is based on FEAR and that's exactly what this guy is attempting to do, to get people to SELL for fear that the price will drop.

Collect gold because you like it, not because it is worth something. It should just make you feel good to have it. Same with silver.

 

i have run across people like that since it was $700/oz. gonna crash in the next xxx years/months. he might have been one of them. when gas and gound beef go to 99c gal/lb gold will be $700 so your still OK. except if your holding your breath waiting.

 

Great comments guys. Thanks. You've all raised some really interesting points. It turns out that I actually have some mutual friends with Yoni, so I may just get a chance to ask him myself!

 

If gold could be produced from an inexpensive substance (such as graphite for diamonds, even though currently done in small amounts ) would you be a buyer of diamonds at current prices?
http://www.gia.edu/research-resources/news-from-research/NPD_Diamond.pdf

The identification differences will be reduced and probably eliminated within a few years, so the average jeweler can't distinguish them. In truth , if they rampant on the market, the average jeweler couldn't distinguish them

 

I have a hard time seeing gold do much more than it has, but one factor I believe important to its future is how well economically countries/cultures that like gold for jewlery or just like gold compared to other consumer items do.

 

I've read a variety of articles on the subject and (as Cloud said) you have to consider the source when parsing the details. Personally, I don't know what will happen, but I think I have an idea what may happen under certain circumstances.

I think of the price of gold as linked to both the money supply and anticipated economic activity. If the economy begins to turn around in earnest and consumers get their confidence back, inflationary pressure will force any administration to deal with the bloated money supply. A shrinking money supply and recovery economy portends lower gold prices.

What if we don't take our medicine and get our fiscal house in order? We'll likely drift around in a state of stagflation for the foreseeable future (like Japan). Gold prices will be adrift on the pulsating seas of unending quantitative easing and low growth...keeping gold prices about where they are for the foreseeable future.

 

there are many people desperate to buy gold. other sold too early and plan to buy back. rumors to let gold down so that they can buy them. sorry folks. it won't happened until gold pass $3,000.00 an ounce. then we will see big correction and push back the gold to $2,500.00 an ounce. so right now the big investors, the big banks, the government or central banks are buying. cause the gold is too cheap. below $2,000.00 an ounce.

 

They can buy it almost anytime. They either don't have the money for it or they are afraid it can go both ways. Desperate perhaps, but not to buy gold.

if it is so cheap , why aren't the small investors buying it now well below $2,000?? I can understand having little free investing money, then buy a small amount of gold, even 1/10 oz at a time, or save up and buy a larger piece. If the big bankers , etc. were buying gold, the prices would move up strongly. Yes, it has in the past, but not now.

Some on the forum think the Banksters are shorting PM to keep it down, others have them buying it as its cheap!! and both sides are bullion bulls. IMO.
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Gold is a bubble, just like it was at $1500, $1000, and $500/oz.

In actuality gold is merely an inverse reflection of currency. For gold to be in a bubble then currency would be in an anti-bubble, and vice versa. I don't think it's hard to substantiate that we are in a huge dollar bubble right now, the biggest in history.

I wouldn't be surprised to see gold go back to $700 in 5 years, with a new currency that is.