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Archive for the ‘Gold’ Category

Gold is going to $1,300/oz by May?

Wednesday, March 25th, 2015

According to BofA top technician, Gold may hit $1300 by May. Checkout the video below posted in CNBC.


Gold going to $10,000 an ounce?!

Sunday, November 14th, 2010

Last year this time, Aaron wrote about gold going to $2,000 an ounce. Gold is trading at $1,368 per ounce now. A serious gold bull named Shayne McGuire has a bold prediction for gold — it would reach $10,000 an ounce! Shayne McGuire runs a $330 million gold portfolio at the Teacher Retirement System of Texas. He made his forecast in the recently released book, “Hard Money”.

McGuire’s logic is that $10,000 gold is possible if enough other pension funds and big investors jump-start buying and move as little as 1% of total global stocks and bonds holdings into the metal. Such a migration into gold would equal enough demand to push prices up tenfold from their current level, he calculates. To me, it sounds crazy. It’s not really percentage of total global stocks and bonds that matter. What matters is the percentage of total asset in each individual fund. There are few mutual funds that invest only in gold. Most of the mutual funds or pension funds invest only 0.5% to 5% of their total asset in gold. Unless there is solid and very compelling reason to buy more gold, fund managers will not increase the current percentage allocation for gold.

There is another gold bull, prominent hedge-fund manager John Paulson, has predicted gold could go to $4,000 an ounce by as early as 2013. Comparing to $10,000 an ounce, $4,000 an ounce seems realistic! Ok guys, just kidding. I don’t think the gold could go even to $4,000 an ounce. It might cross $2,000 an ounce if the current momentum continues. After some point, there would be limited amount of buyers which would naturally bring the price of gold down.

Gold Keeps Going Up!

Saturday, October 2nd, 2010

Gold bulls are enjoying time of their life! Gold keeps rallying to new heights because there is widespread expectations that Federal Reserve bank is keen to implement quantitative easing policy, if US does not see economic growth. Every major country in the world is trying to weaken their own currency to improve their export markets. When the local currencies weakened, gold offers sweet spot for the currency traders. Almost all the metal traders are looking at $1,350 an ounce by the end of this year. Don’t be surprised if this target is met in the next two weeks. When there is uncertainty in the world and economy, gold is the place to be.

Few weeks ago, London Bullion Market Association conference in Berlin made the prediction that gold will rise to a record of $1,450 an ounce in the next year! There were even talks about gold going to $2,000 an ounce.

If you’re pessimistic about the world economy, you should be bullish on gold and other metals such as silver, platinum and palladium. However, if the economy improves in many major countries, the interest in gold will subside down considerably.

If you want to trade gold, you don’t need to buy and hold the metal. You can trade Gold ETF (GLD). If you are experienced with options, you can sell covered calls on GLDĀ  and make decent money as long as gold price doesn’t go down dramatically. If you are bullish on gold, selling puts on GLD is also an attractive option.

Disclaimer: I don’t own GLD at the time of this writing.

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