Goldman lowers 12 month forecast of Gold to $1390

So is this the banksters manipulating the price of PM's downward or just Goldman doing its job and calling it like it sees it?

I vote for the latter

http://finance.yahoo.com/news/anoth...MwLWExY2ItMTFlMi1iYmZmLWViMzExZTNmODdlZA--;_y

HMM the first link seems to no longer work, here is another link that says Goldman forecasts gold below $1300 by 2014

http://www.foxbusiness.com/markets/2013/04/10/goldman-sachs-lowers-gold-forecast-for-2013-2014/

 

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Well they are always wrong so I see this as a good thing. They were bullish on gold when it went into a downturn, now they are bearish. They probably just want the sheeple who actually listen to them to lose money.

Their free advice is worth about as much as you pay for it. You ever heard of bankers handing out free money? Me either.....

 

I have thought $1,200 for a while now. Will I be right who knows but dollar denominated gold will struggle in 2014 IMHO.

 

To be fair, "by the end of 2014" is more like 20 months, not 12.
I think Faber's call of $1,485 (mid-2013) is more likely, but lots of unknowns remain: the Euro-Crisis continues.

Rumors Slovenia might be the next Cyprus. Might that cause a run to Gold? Or just boost BitCoin over $350?

 

They are predicting that gold will be a little lower (less than a $200 drop). It's not much of a news event.

 

NOT much of a news event? Check the OPs from the last month or so "Why are PMs tanking?" "Silver's Dropping like Rock!" etc. etc. (And that's a trifle of volatility.)
If Gold drops $200, we'll have CT jumpers.

 

Pm going down while stocks are going up. Who would have ever thought of that, huh?

You know, I did pretty well with my PM during the 2000's while stocks kind of stagnated, and I am doing pretty well with stocks the last 5 months, (or 5 years), while PM has stagnated. Gee, its almost as if a guy, if he cannot predict the future, might want to have some of both to help even out his total returns, huh?

 

Forget Cyprus or Solvenia tell me if China is still buying and how the Indian gold market is doing. But most of my prediction is based on my belief the dollar will strengthen around the world as assets flee trouble areas and come to the U.S..

 

Great observation and sound advice.

 

Actually the first link said $1390 in 12 months as the title stated, but it looks like yahoo killed that link, the second says below $1300 in 2014, two different pieces.

As far as Slovenia goes, if the first Cyprus didn't cause a run on gold, I doubt the next one will.

 

Diversification, what a concept. It just might work

 

Edited: Juan, the portion in your quote was not directional towards one person, but your reply was. Keep the personal comments and exclamations to the subject matter, and not to the personalities.

So I've been (short-term) bearish on PMs for a couple years and I still see no compelling evidence of recovery... just continuing e-z money Fed efforts to keep Wall Street alive. The mkt is like a hooked junkie desperate for the Fed's daily fix. Where would the S&P500 be without the bond buying stimulus, hmmmm? And jury's still out if Helicopter Drops will work later on, to jack stock prices and drub Gold 2-5 years down the road... the whole program is still aberrant and far from the norm, btw. Or predictable.
The outcome should be known by 2020/2... we shall see!

 

I wrote that tongue-in-cheek, more to goad those who hate (cannot grasp) BitCoin. Another Euro bank holiday might push BitCoin to the moon! LOL

A fifth-stage Euro-crisis could be terrible for US stocks (which are huffing fumes, anyway) yet slightly benefit PMs. The rot reaching Central Europe, into historically Germanic-speaking areas will prompt more retail buying I think.

Other bear ETFs to consider: EFZ, SJB, PSQ, SH

 

Goldman's predictions are taken pretty seriously. If volatility goes up and price goes down, we might see people unloading due to margin calls. Either way, I'm not too bothered by it. I'm not selling any more of my PMs and not buying either. I'll wait for gold at around $1050 and silver at around $21 and then I'll start buying. In the meanwhile, I'll build up my cash reserves and wait on the sidelines.

 

I'd love it to go down

 

2 words: bit coins!

 

China is still buying, although no longer exponentially like they were up to 2012. We also have no idea how much they are mining or how much they are buying that they aren't declaring, but they are pretty big on mining in Africa right now.

The dollar should strengthen as a result of EU uncertainty, at least for the kneejerk reaction, but if the Euro falls it will take the USD with it.

As for Goldman's call for gold to drop beneath $1400, we can chock that up to the bottom being in. Goldman is the most leveraged bank of the big 5, and part of the reason they can do this is by profiting from doing the opposite of what they recommend to their customers. They are one of the best contrarian indicators.

 

http://money.msn.com/bill-fleckenstein/post.aspx?post=40cf0a4b-8553-49ce-ad8c-b59c6b6b3cca

You gold bugs out there will appreciate this article. Fleckenstein's basic thesis is that this latest drop in the spot price of Gold is simply a temporary correction. The bull market in gold must continue as long as the world's major economies continue to "print money with reckless abandon."

 

I wish Juan Blanco would check back in. His last post was right before they pulled the PM plug on the 11th...

 

Merrill Lynch (aka Bank of America) sold 5 million oz of paper gold at market open a week ago to begin the cascade from $26 to $22.50. Then Monday morning the President signed into law the repealing of the Stop Trading on Congressional Knowledge (STOCK) Act which was very discretely proposed by Congress the previous Thursday (insider trading now allowed since disclosure not required). That Thursday prior to the takedown was the very same day that CEOs from BoA, JPM, and Goldman were in the White House discussing how to improve the economy.

Still voting for the latter?