Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

What's Next for Gold After New All-Time Highs?


With the ongoing problems in Europe, fear has once again resurfaced in this market and gold has returned as the safe haven of choice.

I am like a Proud Papa when talking about gold, much because of my history of good calls with the yellow metal. Back in 2008 when I had just first begun making guest appearances on CNBC, I made a bold call to Mark Haines that gold could go to $1500/ounce.

At the end of 2010, we polished our thesis for the gold trade going forward, and so far going forward it has played out largely according to plan.

We have seen inflation take hold in China and there are signs it could soon accelerate at home. Problems have continued in Europe with Greece avoiding disaster with a last-minute austerity package. Now Italy looks like the next of the PIIGS nations to need a massive rescue package. Spain is the other country to run into serious problems of late. You just have to wonder how deep the EU and IMF can reach into their pockets when bigger dominoes start falling.

With the ongoing problems in Europe, fear has once again resurfaced in this market and gold has returned as the safe haven of choice. The economic recovery in the US continues to move at a snail's pace, especially in regards to jobs and the housing market. The slow growth has now prompted Fed Chairman Ben Bernanke to at least start hinting at another possible round of quantitative easing, which would be highly inflationary. The markets and gold have surged over the past two days based on Big Ben's testimony, and it's not out of the question to see the kind of Fed front-running that we saw in the second half of 2010.

The issue that has yet to really rear its ugly head and grab the headlines are the state budget crises. Given the nature of our political system, deep benefit cuts and unpopular austerity measures will be difficult to push through amid the jostling to control Congress and the White House. Many tough choices will need to be made.

When silver made a harsh correction earlier this year following a parabolic run, gold actually held in very well and is now making new all-time highs. As stated last December, I expect the GLD to easily see $160 relatively soon as the factors align to drive it higher. We could see spot gold hitting $2,000 over the course of the next year.

T3Live wants to invite you to a FREE book signing party tonight, July 13th at 5:30pm EST at Trinity Place in Manhattan to celebrate the release of their new book The Modern Trader: Wall Street Traders Reveal Their Formula for Success. Signed books will be on sale, and all proceeds will go to the Stephen M. Perez Foundation. RSVP for the event here. Pre-orders are available now. Order your copy today!
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos