Fifty economists agree gold's future is very bright
By David Bradshaw, Editor RMP
Mar 25, 2008
The commodity super-cycle has swept gold prices to triple
since 2001 -- but that's just the kickoff say the experts.
How high will this bull market in "real money" and commodities drive gold prices over the next 5 to 15 years? Get ready to be shocked!
Gold prices grew about $100/oz. per year between 2003 and 2006. Gold was $300 in '03, $400 in '04, $500 in '05, $600 in '06 and $800 in '07. Savvy investors and gold experts see $1,000 plus gold in 2008!
Recently many analysts have jumped onto the $1,000/oz. plus gold bandwagon -- most of whom were not considered "gold bugs" in the past, like Citibank and JP Morgan & Co.
Here's a list of over fifty prominent analysts, authors and gold experts already on the record forecasting four-digit gold prices to arrive in the years ahead. Their combined gold price expectation is $2,200/oz. gold!
Count for yourself the dozens of good reasons for owning gold today, which these experts suggest will drive gold prices sky high. I've listed two dozen reasons at the conclusion.
TONY LESIAK, Analyst, UBS
THOMAS WINMILL, Manager, Midas Fund
ERIC SPROTT, founder and chairman, Sprott Asset Management
MICHAEL WIDMER, Analyst, Lehman Brothers
PAUL WALKER, Chief Executive GFMS
SEAN BRODRICK, Editor, Money and Markets
DAVID GAROFALO, CFO, Agnico-Eagle Mines
OTTO SPORK, Hedge fund manager, Sextant Capital Management Inc.
JAMES DINES, Editor, The Dines Letter
ROB LUTTS, President, Cabot Money Management
DAVID DAVIS, Analyst, Credit Suisse
JOHN HILL and GRAHAM WARK, Citibank analysts
PAUL O’BRIEN, Analyst, Raymond James
AUBIE BALTIN, CFA, CTA, CFP, PhD
JOHN HILL, Analyst, Citigroup
CHRISTOPHER WOOD, Chief strategist, CLSA
DONALD LUSKIN, Chief investment officer, Trend Macrolytics
AMBROSE EVANS-PRITCHARD, International Business Editor, London Telegraph
NED W. SCHMIDT, CFA, CEBS, Schmidt Management Co.
JP MORGAN CHASE & CO, Third largest U.S. bank
DAVID ROSENBERG, Economist, Merrill Lynch
JIM SINCLAIR, Author, Chairman of Tan Range JS Mineset
LOUISE YAMADA, Managing Director -- Yamada Technical Research Advisors
PHILIP MANDUCA, Managing Director -- Titanium Capital Ltd.
JULIAN PHILLIPS, Analyst -- GoldForecaster.com
DR. CLIVE ROFFEY, Elliot Wave Theory Analyst/Publisher -- Gold Action
HOWARD RUFF, Editor -- The Ruff Times
DR. DAVID DAVIS, Senior Gold Analyst -- Credit Suisse Standard Securities
ROBERT KIYOSAKI, Author -- Rich Dad
STEPHEN LEEB, Author -- The Coming Economic Collapse
HARRY SCHULTZ, Analyst -- International Harry Schultz Letter
PAUL MYLCHREEST, Analyst -- Cheuvreux Investment
JIM CRAMER, Founder -- Thestreet.com, Host -- Mad Money, Real Money JAMES TURK, Founder -- Goldmoney.com
JIM ROGERS, Author/Adventurer -- Hot Commodities (former George Soros partner) RICHARD RUSSELL, Editor -- Dow Theory Letters
J. TAYLOR, Editor -- J. Taylor's Gold and Technology Stocks
JOHN HATHAWAY, Portfolio Manager -- Tocqueville Gold Fund
MARC FABER, Author -- Tommorrow's Gold
BILL BONNER, Author/Editor -- Daily Reckoning
CRAIG R. SMITH, Author/CEO -- Swiss America
Lord WILLIAM REES-MOGG, Author & Economist
ROBERT MCEWEN, CEO -- U.S. Gold Corp.
PHILLIP GOTTHEFF, President/Commodities Analyst -- Equidex Inc.
JOHN PERSON, President -- National Futures Advisory Services
KEVIN KERR, Commentator/Author -- Marketwatch.com
JOHN EMBRY, Chief Investment Strategist -- Sprott Asset Management
PIERRE LASSONDE, President -- Newmont Mining Corp.
BILL MURPHY, Founder -- GATA.org, Lemetropolecafe.com
ROSS NORMAN, TheBullionDesk.com
ADAM HAMILTON, CPA -- Zeal Intelligence
EMANUEL BALARIE, Senior Market Strategist -- Wisdom Financial
NICK MOORE, Chief Metal Analyst -- ABN Amro
PAUL VAN EEDEN, Managing Partner -- Cranberry Capital LLC
JON NADLER, Investment Products Analyst -- Kitco
The list is growing weekly, email us your favorite expert quote on $1,000 plus gold and we'll post them in this space.
1. Gold is still by far the optimal choice for most investors
Boil it all down to this: today gold offers unparalleled safety, privacy and profit potential � just as Swiss America has said for a quarter century. As for my projection on gold prices; I agree with the highly esteemed experts that gold may ultimately rise to four, perhaps even five-digit prices -- as the public's confidence in the world's paper currencies unravels.
Request a FREE review copy of A RARE OPPORTUNITY: GOLD 101 DVD, with companion CD and booklet (a $30 value) by calling 800-289-2646 or registering HERE
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"Gold may have eased back from last week’s record high of $1,030.80 an ounce,
but the yellow metal is well positioned for growth. Gold appears relatively
cheap compared to oil on a historical basis, holding the potential for gold
to more than double to levels where it will regain its long term average
relationship." -Financial Post, 3-25-08
"There is still considerable upside left to gold, although
not without a short-term correction. Gold may someday reach
a peak of $2,000 an ounce. For most investors, gold should
represent a 5 to 10 percent asset allocation," -MarketWatch.
3-24-08
"Turmoil in global credit markets may lead to the collapse of a North
American bank, pushing bullion prices up to $2,000 an ounce as investors
seek a haven in gold. We're in a systemic financial meltdown. Government
bonds are a joke at the interest they're paying. You can buy gold or other
real things -- gold, silver, platinum, palladium -- things that hold value."
-Bloomberg, 3-11-08
"All the newsflow coming out of the U.S. is hugely bullish for the gold market. In the end, what lower interest rates mean is that it will be difficult for the dollar to come back strongly. Inflationary pressures are something that are also playing into the market. Fundamentals are strong and I think $1,000 would not be an end. We are going to go higher from there." - The Guardian, 2-29-08
"The price of gold is likely to peak at just over $1,000 per ounce in 2008. Gold is dancing to its own tune and not just being influenced by a weaker dollar. Walker estimated that investor demand was 12 percent of total demand for gold in 2007." Reuters, 2-4-08
"Gold has enjoyed a great run over the past few years, but it hasn't been a straight path. But one strategy has worked time and time again: Buy the dips. It takes courage to buy when everyone else is selling. But if you do your research, you can act with confidence that even if gold dips lower than you're buying it, the upside potential is huge. My preliminary price objective for gold is $1,065 per ounce, and it could go a lot higher than that." -The Coming Gold Surge, Investors.com, 2-4-08
"We don't see any reason in this cycle why gold shouldn't reach its real all-time high, which is actually about $2,200 an ounce," he told reporters after a presentation in Toronto, adding the time frame of three to five years. -Reuters, 1/10/08
"The price of the yellow metal is en route to $1,500 an ounce
within the next two years. We could easily see $35 or $40 per
ounce for silver over the next couple of years. We feel that
certainly the junior gold and other resource stocks are nowhere
reflecting their true value." -Globe&Mail, 12-4-07
"We would be very surprised if the gold price did not blast right through the old highs, and we reaffirm our old targets for gold of $3,000 to $5,000 an ounce (Plus silver over $100 an ounce) ... gold is not merely a colorful trinket but a monetary asset, and when mass fear strikes at the heart of paper money, the stampede to gold will be awesome." -MW, 11-5-07
"Gold will hit $850-$870 by the end of 2007 and $2,000 gold is
achieveable in this move, given the huge demand from ETFs
and soon pensions and insurance companies will be buying
gold as a new alternative asset class." -CNBC, 11-2-07
"The gold price will soar to more than $1,000 per ounce over the
next five years as dwindling supply of the precious metal combines
with increased demand. Upward pressure on the price of gold is
being driven by the economic environment surrounding the US economy
and a change in the supply and demand dynamics surrounding gold."
-London Telegraph, 11-1-07
"A'Reflationary Rescue', in a new cycle of global credit creation and competititive currency devaluations could take gold to $1,000 an ounce, or higher. Central banks have been forced to choose between global recession or sacrificing control of gold, and have chosen the perceived lesser of two evils." -London Telegraph, 10-1-07.
"We believe this rally is still in its infancy with a ‘toe in the water’ ahead of the upcoming 4Q. The gains for gold can be attributed to the interest rate cut by the Federal Reserve and continued weakness for the greenback."
-National Post, 9-24-07
"When FEAR combines with full blown Greed, there is no longer any more talk of correction as prices begin to jump 5% to 10% in one day and people line up to buy bullion as signs pop up everywhere, “WE buy and sell gold”. Once both fear and greed take over the market and the short squeezes begin in earnest, there is no way of predicting how high the high. $2,200 gold and $100 silver seems the barest minimum targets, maybe $5,000 or even $10,000." -FiendBear, 9-24-07
"Gold appears to be entering a new investment-driven phase and has re-asserted itself as a safe haven. Gold will be one of the top beneficiaries of the “Re-flationary Rescue,” which should bode well for hard assets and basic materials. I would not be surprised if gold were to break its all-time high of $850, or even $1,000 or higher in a new cycle of global credit creation and competitive currency devaluations." -National Post, 9-21-07
"Market ructions, the sub-prime conflagration and a collapse of the dollar could send gold prices to more than $3,400 an ounce within the next three years. This is not a sub-prime crisis. Sub-prime has merely exposed the bigger scam of structured finance; a scam that is about pretending that bad credit is good credit." -London Times, 9-19-07
"I've written in this column about inflation often over the last three years. I've said gold was going to $1,000. If the Fed cuts rates, then I'm going to have to admit I was wrong. Then gold isn't going to $1,000. It's going to $2,000." -Smart Money, 9-7-07
"Gold will fly once investors can see that neither of the two reserve currency pillars (euro and dollar) is on a sound foundation, and once the pair are engaged in a beggar-thy-neighbor devaluation contest to stave off a slump, this would amount to a partial breakdown of the monetary system. Gold will not stop at $800. It might well go beyond $2,000." -London Telegraph, 7-23-07
"Monetary illusion evident in the value of paper equities versus
the return on paper equities should not be ignored. Asset meltdown
now taking place below the surface in mortgage related investments
held by speculative hedge funds. As that happens and carnage spreads,
the U.S. dollar will come under increasing selling pressure. Gold will
be the investment that benefits, and continue the move to more than $1,400."
-Financial Sense, 6-20-07
"Gold may rise to more than $1,000 an ounce as demand from India, China and exchange traded funds increases and production of precious metal falls." -Bloomberg 6-7-07
"The current bull market for gold could last another five years, if
certain conditions are in place, and the metal's price could soar to an
incredible $1,500/oz. Investors should buy gold to beat the current period of
stagflation." , -Platts , 4-11-07
"Gold has no agenda, no allegiance and functions as honest money in a world of lies, corruption, overstatement and spin. $700 to $705 might well be a place certain interests will try and block gold, but their only hope is for momentary success. $761 is yanking at gold from the front with great power. $887.50, a break above $1000 and $1650 are putting their grip on the royal metal as well." JSmineset.com, 2-25-07
"Gold is the purest play against the dollar. I see gold surpassing $730 in 2007 on its way to $3,000 within a decade. Gold is probably the most straightforward investment to go with in this environment because of its consistent inverse relationship to the dollar.Other countries are trying to diversify their dollar holdings. They're buying gold and anything they can to get out of the dollar." Bloomberg, 12/11/06
"Gold is still by far the optimal choice for most investors
to play. It's been successful in '04, '05 and '06. Gold
will be through $1,000 in the next 18 months." -Bloomberg, 11-29-06
"We would not be surprised to see $1,000-plus gold from sometime in 2007 at the
earliest to 2009 at the latest. Physical demand is now being added to by the
turnaround in hedge funds' change of heart to the upside. The potential oil
shortage and more-than-likely ruptures in the stability of the
global-money system when the dollar starts to suppurate." -Marketwatch, 11-3-06
"I believe that the current correction is a more likely to be a minor
before a move to well above the previous $720 peak, probably above $800.
When the minor correction should occur leading to a wave five that will
eventually peak well above $1,000 before we hit the next major correction."
-321gold, 10-6-06.
"Gold and silver are now early in a historic bull market that will
dwarf the 500-1700% profits we made in the '70s. Gold will hit at
least $2,172 and $100 silver is inevitable. Investment vehicles to
avoid: Stocks, bonds, fixed-return investments like utilities,
REITs, residential real estate, ARMS (adjustable rate mortgages). Investment winners in bull markets: Gold, silver, copper and other
base metals, uranium. The most powerful, completely essential factor
affecting gold is monetary inflation. The most compelling force
affecting silver today is the supply/demand equation." -Marketwatch, 8-24-06
"Between 2007 and 2010, supply-and-demand dynamics will undergo irreversible
change, caused by a decline in global mine and official sector supply and
increased demand from China and the investment community. We still see a
gold price of $700/oz, $800/oz and $1,200/oz by 2008, 2010, and 2015
respectively." -Resource Investor, 8-4-06
"I still think gold will go to $1,500 an ounce. I'm betting against
the U.S. dollar. Gold is a hedge against U.S. government mismanagement.
My family members have a tradition of saving all their spare change
for months on end and then trading all the coins in for a single gold
coin." -Washington Post, 6/20/06
"Gold took a hit last week, falling 5.7%. As with other commodities, gold was perhaps due for a correction and responded to Bernanke's tougher words. We could see it drift a little lower -- between $580 and $600. But this downside is paltry compared to the upside potential for gold. Gold could reach a price many times higher than it's at today, regardless of whether inflation or deflation becomes the problem. So we remain buyers of gold along with energy and our low-risk hedges." The Complete Investor -6-12-06
"My view has always been: current governments (which are bank-owned) won't voluntarily
return to a gold standard, with its discipline on money creation. But, when the price
roars to, say $1,600, they'll quite possibly be forced to do so, to appease a clamor
for sound money - e.g. Bretton Woods II. The price could go to $2,000 while they debate
new rules. Washington insiders would see it as their last chance to save the US dollar
as a reserve currency. If they don't, the euro, yen or yuan could make a bid for that
status ... If no rules are made at $1,600, gold could keep climbing till they do.
Hello $3,000." -MW, 6-5-06
"We also see the possibility of a spike to $2,000 or higher, if the story on
diminished central bank gold reserves becomes widely accepted, if central banks in countries with large US dollar holdings compete to buy gold and diversify
forex reserves away from dollars, and if the U.S. economy slides into either
high rates of inflation or deflation." -Mineweb, 2-6-06.
"Gold could reach $1,000 if the Chinese stop buying our paper. Once the levee to the Treasuries
breaks, the easy high ground worth gaining will be gold. Any portfolio designed to counter
government-mandated inflation has to be bedrocked in gold" -New York magazine, Oct. 10, 2005
"Gold is going much higher, and the $8,000 [per ounce] I mentioned a couple of
years ago is probably as good a target as any. There are two aspects to what's
driving the gold price: First, there is strong physical demand around the world.
When gold crossed the $500-an-ounce level, people started buying gold in anticipation
of monetary problems. Second, the physical demand for gold is causing a huge problem
for the gold shorts. There has been a large gold carry trade in place. It is very
possible gold could have a massive spike in the next six to 12 months to as high
as $2,000, driven by these factors." "GOLD MINE" -Barrons, 5/29/06
"Mr. Rogers, who foresaw the start of a commodity rally in 1999, told Bloomberg the boom in
energy and raw material prices will endure, driving gold to a record $1,000 an ounce. The
shortest bull market for commodities lasted 15 years, the longest 23 years, so if history
is any guide, they've got a long way to go. This is not a bubble." -Bloomberg, 4-19-06
"Gold is now being accepted as the fourth currency along with the dollar, the euro and the yen.
But there is a difference. Gold is also being recognized as the tangible currency and the ONLY
SAFE currency. That gold pays no interest -- but is still at an 25-year high in terms of dollars
-- is a testament to its value and safety in the eyes of sophisticated investors." Dowtheoryletters.com
"This is a different gold bull market and most bullish of all is that fact that this is still a stealth bull market. The voice of the global market is just starting to express a declining confidence in the dollar but with a coverage of only 1.7% [in U.S. gold reserves] at close to $700/oz., I believe we are still in the very early stages of a major gold bull market. We have a long, long ways to go toward $3,000 and beyond." -Howestreet.com
"Gold is in a bull-market trend, and there are a lot of reasons for that, and we will see higher prices. People shouldn't be surprised to see gold trade in the four digits." -Barrons ... "In truth, the price of gold at $600 is no big deal. In 1980 dollars, it is only $300. If prior highs mean anything, a target of $1700 in today�s dollars is what investors should be thinking about. Investors should worry less about whether this particular moment is a good or bad entry point and ponder the implications of sailing through uncharted waters without a lifeboat." -Tocqueville.com
"A vicious drop in the Dow coupled with a vicious rise in gold, possibly pushing gold to
an astounding $2,000, $3,000 or even $6,000. Commodities are an asset class for the first time in
history." Marketwatch.com
"When the price of gold goes over $1,000, the bull market will be in its bubble phase. The price
may go far higher - depending on what else is going on in the economy and the markets. But this
will be a time to be careful...when we stop adding to our positions and begin to reduce them.
Gold is now cheap and almost hidden. People are buying it for the right reason: because it is cheap.
We see signs, though, that gold is coming out of the closet and the financial press is beginning to notice."
Dailyreckoning.com
"Gold is clearly headed toward $1,000/oz. and is still a great bargain near $700/oz! Gold
recently jumped over $700, and is overdue for a price correction -- which is the sure sign of a
healthy bull market -- offering yet another opportunity to buy the dips in this ongoing secular
bull market." -CNBC Squawk Box
"I expect gold to reach $1,000 an ounce in the foreseeable future. The price of gold is linked to the price of oil and to the movements of the dollar... oil is probably headed towards $100 a barrel. If there is any shooting in Iran, prices will go through the roof. That, however, is one reason for thinking that there may not be any attack on Iran. The world�s oil supply cannot afford it." -Money Week
"Gold prices may reach $2,000 an ounce by 2010 on demand for an alternative to currencies.
You have much more money than there is gold, and as people see their currencies falling
relative to gold, they're going to be saying `Maybe I should have some of this'." -Bloomberg
"The gold market knows inflation is already here ... which helps explain the hysterical surge in prices in 2006... ETFs have expanded the metals market to now include institutional investors... With Goldman Saks forecasting $100+ oil I think we could see $1,000-1,500 gold easily... Why hoard? Because investors are afraid of paper. If we were to try to monetize our paper with gold the price would be in the $10,000/oz. - $20,000/oz. range." -CNBC "$1,000 gold debate" 5-9-06
"As more and more investors start allocating more resources in gold, we could see $800 and as high as $1,000 by year's end. All the elements are in place for such a move, and it would not be unrealistic to achieve in a relatively short period of time." -Marketwatch.com
"Golden Opportunity: The case for $1,000 an ounce... If your thing is to hold the actual
gold in your hand then numismatics (coins) or bullion are the way to go."
-Marketwatch.com
"Gold will hit at least $800 per ounce as paper money is going to hell in a handcart. Even a $1,000/oz
gold price may be conservative." -MineWeb.com
"The price of bullion may exceed $1,000 (U.S.) an ounce within five to seven years as demand
growth driven by Asia outstrips global supply."
Globeandmail
"What we are seeing is the result of years and years of a gold price suppression scheme
BLOWING UP! Gold is moving up because the crooks have lost control! GOLD is going to go
to $3,000/oz as more geopolitical problems arise."
-GoldRush21
"Yes, I do think we will be in the $700s perhaps late in the second quarter, or perhaps the third
quarter of 2006 - the market seems incredibly robust both in terms of external factors like the
correlation with the oil market that we�re still underperforming against - if the ratio held with
that we�d be at about $1,000 an ounce now. I think it�s gaining strength from the ETFs and more
corporate and pension money coming into the market on a regular day by day basis - all this
conspires to make one believe that the market has got plenty of strength, that it�s �stronger
for longer� as they say."
-Thebulliondesk.com
"If our current gold rally truly unfolds into a Great Gold Rally, $1000 gold is merely
the first stage. A gold bubble, which will probably ultimately happen as a way to
climax the coming gold mania maybe five to seven years out, could easily launch gold
above $5000 per ounce. The actual top of a new gold bubble at the final pinnacle of
another Great Gold Rally could touch $6000+ per ounce!" -Zeallc.com
"I think gold prices will eventually shatter even my own bullish expectations of $1,000/oz. If you have not entered the gold market, waiting for an opportune time might be too late. Keep in mind that regardless of what the media is telling you, gold is still cheap at these levels." -CNBC Squawk on the Street
"$1 000 gold is by no means an outrageous forecast. It's a cocktail of positive stimuli for gold, you get the spillover of people buying into commodities, whether its copper, aluminum, soft commodities or precious metals. People are moving there." -
Fin24.com
"While my model indicates gold should be fairly valued at $900, there's no reason to believe that gold wouldn't dramatically overshoot that mark. And if 1979 to 1980 is anything to go by, it could exceed several thousand dollars per ounce." -Bloomberg
"Gold prices actually started their life at $35 per ounce in the early 1970s.
From there, it went to $850-$875 -- a twenty-five-times-over move. Gold began its
latest move up at $252, so prices at $6,250 can't be ruled out either, in terms
of magnitude of the move." -Marketwatch.com
24 Reasons to Own Gold� NOW!
2. Likely ruptures in the stability of the global-money system
3. $625+ gold prices will eventually peak well above $1,000
4. The most powerful factor affecting gold is monetary inflation
5. 2007 gold supply/demand dynamics: irreversible changes
6. Gold's downside risk is paltry compared to the upside potential
7. Some insiders see gold saving the US dollar as reserve currency
8. Central banks buy gold to diversify reserves away from dollars
9. Portfolios designed to hedge inflation must be bedrocked in gold
10. Shortest commodity bull market is 15 yrs, the longest 23 yrs
11. Gold now accepted as fourth global currency (with $, Eu, Y.)
12. Most bullish of all: the fact this is still a stealth gold bull market
13. Investors should worry less about good/bad gold entry points
14. Commodities now an asset class for the first time in history
15. Gold is coming out of the closet and the press is taking notice
16. Price corrections are a sign of a healthy bull market, buy dips
17. If there is any shooting in Iran, gold/oil will go through the roof
18. Hard currencies (gold) boom as people notice currencies fall
19. Gold market knows inflation already here, explaining 2006 surge
20. More and more investors allocating more resources into gold
21. Gold you hold in your hand: Numismatic coins or bullion best
22. Gold gaining strength from ETFs, corporate and pension money
23. A gold bubble 5-7 years out could launch gold above $5,000/oz.
24. Regardless of what the media says, gold prices are still cheap
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DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of Swiss America. Past performance of any investment is no guarantee of future performance. All investments have risk.