The latest UBS report on gold (Click here to view the report in PDF format) says that it can potentially go to US$2,500/oz.
The exact wording is:
"Using a proprietary econometric model we have generated a probability cone for the future possible price path for gold. Using different environments for the level of inflation volatility, US dollar and absolute level of inflation we have determined that future returns on gold are likely to be positively asymmetric, with potential upside to US$2,500/oz."
They note that gold is a hedge against deflation and inflation particularly if the source of that inflation is loose monetary policy.
They recommend exposure to gold and favor gold shares.
"The Swiss bank, one of the most active gold dealers, warned of "a potential upside of $2,500 an ounce" as some hedge fund investors who made money last year by betting against investment banks are now buying gold as a way of betting against central banks."
This article appears in money.ninemsn.com.au and I thought you should see it.
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This is because UBS spent more time talking about meaningless central bank gold sales. It was that which was put up on Bloomberg every 4.5 minutes from 8:30 AM to and through the end of Bernanke’s speech and pre-screened friendly question interview.
Since the gold guys spend more time looking for why they are wrong the Comex had its way with gold one more time.
Actual ‘Letter to the Editor’ from the February 5th edition of the Wichita Falls , Texas Times Record News…
I am sorry to inform you that I will not be able to pay taxes owed April 15, but all is not lost.
I have paid these taxes: accounts receivable tax, building permit tax, CDL tax, cigarette tax, corporate income tax, dog licence tax, federal income tax, unemployment tax, gasoline tax, hunting licence tax, fishing licence tax, waterfowl stamp tax, inheritance tax, inventory tax, liquor tax, luxury tax, medicare tax, city, school and county property tax (up 33 percent last 4 years), real estate tax, social security tax, road usage tax, toll road tax, state and city sales tax, recreational vehicle tax, state franchise tax, state unemployment tax, telephone federal excise tax, telephone federal state and local surcharge tax, telephone minimum usage surcharge tax, telephone state and local tax, utility tax, vehicle licence registration tax, capitol gains tax, lease severance tax, oil and gas assessment tax, Colorado property tax, Texas, Colorado, Wyoming, Oklahoma and New Mexico sales tax, and many more that I can’t recall but I have run out of space and money.
When you do not receive my check April 15, just know that it is an honest mistake. please treat me the same way you treated Congressmen Charles Rangel, Chris Dodd, Barney Frank and ex-Congressman Tom Daschle and, of course, your boss Timothy Geithner. No penalties and no interest.
P.S. I will make at least a partial payment as soon as I get my stimulus check.
We live in an age marked by stupidity and ignorance even though we have the most advanced technology and means of conveying information ever devised yet by man.
Sitting here watching these dumbasses throwing gold out the window in the midst of what is occurring is something I did not believe men were capable of.
I guess we all learn each day… never underestimate the ability of the American citizen to be so damn dense….
To this all I can add is AMEN Brother.
Have you been asked by the decision makers for advice? I guess not as you will tell like it is.
Everyone knows (at least by now) what the truth is but to take the right path is too damn hard to take.
Such brilliance in your analysis and a shame you are not being consulted and then to listen to the garbage from the media experts, talking heads, etc.
I guess the day Man can legislate Conscience it will be the end, but it is impossible.
Another enlightening comment: God created earth, water and air for all the living. Two of them man has been able to legislate – i.e. mine, yours… Air is the only thing man has not been found to be that brilliant to legislate. Just imagine if they could legislate AIR!!
It was a great American, Chief Seattle, that asked; "How can you sell air?" Wall Street did. Air is called OTC derivatives.
If governments took only one thing I know seriously, I would hope it is the danger of Pakistan in Taliban hands. That one can change the face of the planet.
I remember seeing many years ago a chart of a cup and handle for gold, it appears we have another one! It looks like gold will double very soon.
Again you look spot on for your target of 1650 on or before Jan 14, 2011!
Dear CIGA BT,
Yes, and there is no power on the planet that can stop this. The consequences of these actions are only a matter of time.