Cheer up. It may get ugly in the next little bit, but it should be better next year.
Citi Predicts Gold At $3400 In “The Next Two Years”, Potential For Move As High As $6000:
While we remain cautious on Gold in the near term and believe that we could correct lower towards $1,600 and possibly re-test the $1,550 area we continue to believe that the bull market remains intact. As with the Equity market we believe that 2012 may be reminiscent of 1978 when Gold rallied nearly 50% off the 1977 close. Such a move would likely put Gold in the $2,300-2,400 area in the 2nd half of 2012.
On a longer term basis we expect even higher levels and target a move towards $3,400 over the next 2 years or so. We are not yet on board with the idea of a move with the same magnitude as seen in 1970-1980 when the last spike in Dec 1979-Jan 1980 saw Gold almost double in price as Russia invaded Afghanistan. Such a dynamic would suggest a move above $6,000 but we prefer to take a more conservative stance and look for a move similar to that seen without that final event driven push at the high which was a “blowout top” in Jan. 1980.
Would you rather have your money in gold and silver or in Global MF?
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I probably agree that gold is bullish over the next few years or at least until our government gets its economic act together, if they ever do.
However, the fact that Citi is promoting gold is almost enough to make me think bearish instead of bullish. Their track record is such that they are not one I would have much faith in their advice about gold or anything else.