We all knew this was coming.... Gold price may double in long-term: Citigroup Posted: May 21, 2008, 9:46 AM by Jonathan Ratner ....Mining and metals analyst John Hill said... âLonger term, we would not be surprised to see gold double from current levels as the global policy prescriptions for the credit crunch remain powerfully and uniformly re-flationary,â the analyst told clients. http://network.nationalpost.com/np/...-price-may-double-in-long-term-citigroup.aspx
Maybe John Hill would be really surprised and excited if we entered into another deflationary liquidation with gold losing half of its current value.
Deflation? With bail-out bernacke printing dollars hand-over-fist for underwater banks? Not yet. Give it a few years.
I love the vaugeness of some of the analyst calls out there. The statement "Gold MAY double in the Long Term" is absurd. Let's have a concise call, not this psychic hotline bs. Of course gold may double in the long term. That means there's a 50% chance that in an unspecified amount of time gold could be worth 2x. Honestly, I don't know how some of these monkeys can keep a job with their lame, vague calls. Here's my prophecy: In the long term, the dow MAY, or may not, be up 200% from where it is today.
Haha exactly, these people really are overpaid. The best is when they really stick their necks out - when oil was at $125 I remember reading an article on bloomberg by an analyst saying oil may hit $130. What would we do without their expert opinions?
And then again, it may not... Some idiot analyst may come out with a "kinda, sorta, maybe, someday" prediction on some market in the future. And then again,... Nope - THAT one is a DEFINITE.
Is this a valid claim based on supply and demand, the Fed lowering of interest rates, and the suffering US economy, or do you think this analyst is attempting to pump/manipulate the price of gold on speculation.
monty, I think this is a "play it safe" call by the analyst who sees the persistence of inflation due to the global demand dynamic. I believe he's right, but it might take another 20 years for the inflation adjusted price of gold to go from 1x to 2x. His "long run" timeframe is just such a vague comment that it warrants a little "razzing". As long as there are women on this earth, and men willing to buy them whatever they want, the demand for gold will continue. And remember, gold, much like oil, is a limited commodity.