Bad omen - Gold price could smash records at $2,000,

Discussion in 'Gold' started by openeyes, Sep 10, 2019.

  1. openeyes

    openeyes Well-Known Member Silver Stacker

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    Seems like a bad omen when large banks start saying this type of thing.

    Gold price could smash records at $2,000, says Citi. The price of gold could hit a record high of $2,000 an ounce within the next two years as US economic growth fades and the Federal Reserve cuts interest rates, according to analysts at Citigroup.
     
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  2. 66rounds

    66rounds Well-Known Member Silver Stacker

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    When you hear about gold in the MSM, it's already too late to buy in. Hang on and enjoy the ride.
     
  3. JOHNLGALT

    JOHNLGALT Well-Known Member

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    I'm being lazy here @openeyes but can you post a link to that Citigroup article please?
    Maybe in the opening of the thread.
     
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  4. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    FT https://www.ft.com/content/d28b9f98-d2fb-11e9-8367-807ebd53ab77

    Gold price could smash records at $2,000, says Citi

    Precious metal has rallied after big purchases from central banks, including China’s.

    The price of gold could hit a record high of $2,000 an ounce within the next two years as US economic growth fades and the Federal Reserve cuts interest rates, according to analysts at Citigroup. The New York-based bank said in a Monday research note that the precious metal could top levels last seen eight years ago, when gold surged to $1,900 an ounce, as uncertainty over the 2020 presidential election combines with a sputtering domestic economy.

    Investors around the world have been drawn to gold at a time of negative bond yields, which have increased the appeal of yieldless assets such as gold. Around $15.3tn of bonds are trading at levels that guarantee buyers a loss, if the bonds are held to maturity. The gold price has risen by 17 per cent this year to trade at $1,495 a troy ounce, putting the precious metal on track for its best year since 2010.

    Citi said a combination of lower rates, growing risks of a global downturn, and strong demand among central banks could push prices higher still. Central banks are buying more gold this year than any year in the past nine, according to the World Gold Council. “We expect spot gold prices to trade stronger for longer . . . posting new cyclical highs at some point in the next year or two,” strategists including Aakash Doshi said in Citi’s note.

    Big foreign-exchange holders such as China, which has $3.1tn in reserves, have been keen to diversify their portfolios to limit exposure to the US dollar. China’s central bank has bought $4.8bn worth of gold over the past nine months. “It does seem that gold’s status within the portfolio has been reignited,” said Suki Cooper, an analyst at Standard Chartered in New York. The People’s Bank of China increased its holdings of gold to 62.45m ounces in August, from 59.24m in November, according to a weekend notice on its website. That takes the bank’s total gold holdings to around $94bn at current prices.

    Last year, central banks bought the most gold in 50 years, led by Russia, whose holdings of gold are now worth around $100bn. Alistair Hewitt, a director at the World Gold Council, said that central banks across emerging markets are attracted by the liquidity of the gold market and its lack of default risk. Countries such as Russia have also adopted a clear policy of “de-dollarisation,” he said. China is the world’s biggest producer and consumer of gold, but the precious metal makes up just 2.7 per cent of its official reserves, which are worth more than $3tn. “Their FX reserves are so large [diversification is] going to take decades and decades,” said Bernard Dahdah, a commodities analyst at Natixis.

    The precise composition of China’s foreign exchange reserves is a state secret, but officials have previously said that the currency mix is broadly in line with the composition of global reserves as indicated by IMF data collected from member countries. US dollar assets comprised 64 per cent of allocated reserves by the end of 2016, according to the latest data.
     
  5. 66rounds

    66rounds Well-Known Member Silver Stacker

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  6. Oddjob

    Oddjob Well-Known Member Silver Stacker

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  7. openeyes

    openeyes Well-Known Member Silver Stacker

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    So very true
     
  8. The_Roll_ Man

    The_Roll_ Man Well-Known Member Silver Stacker

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    What happened to that 'doom-sayer', who kept telling us all to sell out of gold ... as it was doomed to fall below a grand an ounce ?
     
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  9. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Shit if it falls below a grand I'd be happier than a pig in shit. I'd be buying 10oz bars with cash
     
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  10. JOHNLGALT

    JOHNLGALT Well-Known Member

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    Harry Dent is his name & he is still out there somewhere wandering in the wilderness.
    On a more serious note, it could happen if the paper & digital Ponzi house of cards called derivatives collapses & is wiped out by a chain reaction of defaults on promises to pay (which each paper & digital Dollar & derivative is).
    You will have noticed that on each ounce Australian Gold Dollar coin is marked $100 Legal Tender.
     
    Last edited: Sep 23, 2019
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  11. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Makes $200 Koala 10g coins a good defensive buy
     
  12. Silverman99

    Silverman99 Well-Known Member Silver Stacker

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    Yes he/she has gone very quiet on the forum
     
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  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Keep an eye on the technical indicators.
     
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  14. JOHNLGALT

    JOHNLGALT Well-Known Member

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    Yes @66rounds it would seem so, unless the world goes full MAD MAX (i.e. the collapse of law & order), & only the Gold & Silver content is recognised as the value by weight.
    Sorry, but we have never been in a situation like this world-wide & we have to think through all of the possibilities.
    200 Dollar AUST GOLD COIN.JPG
     
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  15. openeyes

    openeyes Well-Known Member Silver Stacker

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    Having broken through $1525 oz USD it would seem we might get another leg up.
     
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  16. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    https://www.canstar.com.au/savings-accounts/average-australian-savings/
    49% of Australians have less than $10,000 cash in savings.
    25% have less than $1,000
    (I am presuming outside of super)

    A big ask to have gold, with only $10,000, it is not a lot to live on if they lose a job.
     
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  17. openeyes

    openeyes Well-Known Member Silver Stacker

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    Considering Australia’s large gold mining industry they should make all super funds have a 10% allocation of PMs.
     
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  18. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    Thx to Trump impeachment inquiry.... love that stupid guy!
     
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  19. TreasureHunter

    TreasureHunter Well-Known Member

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    You trust Citi?

    Well... countless "experts" said that in 2011, 2012, 2013 too! And it never happened.

    Regardless, gold has taken a much bigger leap than ever before. It might as well be the first step of the next bull market.

    Focus on the next dip if you want to buy in. I think it will take a dive in October. And another one in December's second half. Anyone missing that buying opportunity will cry next year. I don't know about 2,000 $, but next year we will see values above 1,600-1,700 $, I think.
     
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  20. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    What's your rationale behind a dip in October and another in the 2nd half of December?
     
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