Hulbert is right. Factors already in place warrant gold priced at the $2,500 level. Events yet to come on the path our politicians have laid ensure far higher prices still.
Gold is in a secular bull market that will peak sometime between 2014 and 2020. Its blowoff stage has not yet begun.
Sept. 7, 2011, 12:01 a.m. EDT
Gold’s rally will continue
Commentary: Contrarian analysis of gold sentiment is bullish
By Mark Hulbert, MarketWatch
CHAPEL HILL, N.C. (MarketWatch) — Gold’s sentiment stars are aligned in favor of bullion rallying to even higher prices.
This alignment represents a big shift from the situation prevailing in the last half of July, when I last devoted a column to gold sentiment. I wrote then that the wall of worry that previously had existed in the gold market had largely disintegrated, replaced by excitement and exuberance. ( Read my July 19 column on gold market sentiment. )
To be sure, the resultant contrarian-based caution was premature. But contrarians can claim some vindication in the huge drop that bullion suffered in late August — when spot gold dropped from an intraday high of $1,929.00 on Aug. 23 to an intraday low of $1,702.80 just two trading days later.
As I wrote in July, the excitement that then existed in the gold market was “close to the fever pitch that prevailed in late April. Soon after that previous crescendo of bullish enthusiasm, of course, gold encountered a stunning air pocket and fell more than $100 per ounce.”
Regardless, that huge two-day drop in late August did scare a lot of erstwhile bulls into becoming almost stubbornly bearish — which, from a contrarian point of view, is bullish. As a result, even though gold bullion is now back within shouting distance of its August highs, gold market sentiment remains remarkable subdued.
Full story: http://www.marketwatch.com/story/golds-rally-will-continue-2011-09-07
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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