Of course, these analyst estimates are silly. Gold isn't a thinking entity and isn't setting its sights on anything. What we have is a writer who is repeating what a number of analysts are predicting. But where were these guys with their $2,000 predictions when gold was sub-$300? I sure wasn't finding very many of them.
That tells you something about the pundits. Even Jim Sinclair, who was so optimistic about gold that he was branded a nut, only called for $1,650 gold. And as we all saw, gold flew through that mark without even flinching. (For the record, I consider gold overbought. I expect it WILL hit $2,000 this year, but I also know it needs to re-test $1,600. Odds are good that gold is in for a BIG pullback, very soon.)
So the pundits don't really know how high gold will go. My own opinion is that gold's price activity will inversely correlate to the decline of the dollar -- but with a multiplier that grows the more the dollar falls. If the dollar loses 10 percent of its buying power from here, gold's price could increase threefold. If the dollar loses 20 percent of its buying power from here, gold's price could increase a tenfold.
And I think the dollar is ultimately going to lose ALL of its value.
Aug. 19, 2011, 2:28 p.m. EDT
Gold settles at record; $2,000 within sight
Safe-haven flows send metal up 1.7% to $1,852.20 an ounce
By Claudia Assis and William L. Watts, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures surged to another record Friday as investors held a dim view of global growth prospects and sought instead the perceived safety of the metal.
Gold for December delivery /quotes/zigman/661658 GC1Z +1.83% advanced $30.20, or 1.7%, to $1,852.20 an ounce on the Comex division of the New York Mercantile Exchange. It traded as high as $1,881.40 an ounce, an intraday record for the metal.
“We could hit $2,000 as early as next week sometime at this rate, certainly in the next weeks,” said Matt Zeman, head trader and strategist at Kingsview Financial in Chicago.
Gold’s fast rise has been of some concern, he added. It could end with a selloff that would shave $200 to $100 off current prices, although underlying fundamentals for the metal are favorable, Zeman said.
“It is starting to look a little bit bubbly,” he said.
Gold added 6.4% in the week. It has gained 14% this month, having ended July at $1,631.20 an ounce.
Friday’s record supplants the previous high-mark hit on Thursday, when gold ended at $1,822 an ounce.
Full story: http://www.marketwatch.com/story/gold-futures-buoyed-by-safe-haven-appeal-2011-08-19?dist=afterbell
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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