The Case for $2,000 Gold
Nov. 7, 2007 Moving little faster than a 19th century stagecoach, this "secular" (long-term) bull market in tangible assets has managed to escape the notice of mainstream America or media fanfare so far in the 21st century.
That is about to change. Now that gold prices have risen near $850/oz., a new public phase of the gold rush is set to begin. Strong physical demand, a falling dollar, central bank buying, geopolitical risks and concerns about inflation are only a few of the major forces driving this gold bull.
"Gold is not a mainstream investment yet, because it's seen as difficult to understand," financial gurus tell Reuters.
Yet every day it becomes easier for the man on the street to understand that his paper dollars are becoming " Worthless " … and his food, health care, gas, oil, gold, silver and most other tangible assets are all costing him more.
"The relatively subdued interest of the investing public, if not the investment newsletters and columnists, is in fact good news for those long the metal. It means there are a lot of people left to buy the stuff, which is not the case at bull market peaks. So even at about $800 the ounce, the real Gold bull market has not begun," reports London Financial Times.
Media headlines report: "Gold at 28-year high", yet fail to mention, that after discounting prices for inflation.
Gold must rise above $2,150/oz., three times the current price, to reach the previous 1980 price peak.
In reality, Gold is about one third of the way toward reaching a true new high. Using the official government CPI inflation adjuster, $800/oz. gold today equates to $316/oz. gold back in 1980.
Rather than being near a market top, gold still remains the buy of a generation. Economists finally agree on gold's future –
Read Full Article HERE -Protect Yourself ! (this was written last year)