http://www.news.gold-eagle.com/article/gold-price-forecast-gold-could-climb-toward-3000-2021/1129 One could certainly argue that all of the fundamental conditions that caused the last gold bull market are as bad or even worse today. Debt levels are much higher, too-big-to-fail banks are still over-leveraged, global de-dollarization has only accelerated and the FED has much less wiggle room this time around. Corporate debt levels in particular have skyrocketed and have many analysts concerned that it could trigger the next crisis. We also have major trade wars and seem to be on the brink of war with Iran
I note this price is in USD. Had it been in AUD I would think it a more reasonable target. Gold at USD3000 would mean approximately AUD4250 if both currencies remain at similar levels as they are today. Unlikely, but i guess anything's possible.
It may sound a little weird to say $3000 but given the current global conditions and manipulation, anything is possible. .. . .but what happens after that . . . A global crises, chaos and what not . . . .It gives me shivers!
The USD link to the AUD is the issue. Predictions are the AUD to slide to USD 60c which would achieve the circa AUD 3k figure, however that requires an ongoing strong USD. Given past actions, the machinations by the Powers That Be to give the incumbent best chance in the election, I expect the USD to remain fairly strong. Given the current economic trends in Oz and the recent debt load from the tax cuts I'd expect the AUD to slip further and gold holders in Oz to reap that relativity. After the Trump re-election (or not, but I expect him to continue in the chair) all those US chickens being fed with cheap money and trillion dollar debt pumping will come home to roost and a long predicted USD devaluation will happen as part of the end of the USA/USD hegemony. Of course Trump is somewhat of a dill regarding government finance but considering his relliance on Goldman Sachs et al, the collusion to get the books looking good for re-election is likely pretty solid, so I expect the USD slide to happen after the US election rather than before. To summarise this somewhat jumbled series of ideas; $AUD 3k will be a brief window in late 2020 in my view, and I expect it to revert to the $2"-2200 range, bouncing with the USD tie for quite a while before a massive burn-out in 2025/26 that will reap any number of changes (reserve currency, revaluations, collapses etc) and a return to relatively stable circumstances in a deflationary future with a gold backed currency base. (25-26 because Trump or next Fearless Leader will keep on pumping. This of course being predicated on the realistic phrase which describes bankruptcy as "slowly at first, then all at once. But don't hold me to it!!
I don’t think the USD will slide much as long as Trump is re-elected. Deficit also have to look at what you’re spending on. Money spent on Iraq and Syria is money down drain. Money spent on infrastructure may even return dividends and profits. For example, building the wall is only a one time cost but it will save a lot of money on law enforcement and prisons.
