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Expect $2,000 Gold & A Massive Squeeze In A Key Commodity

from KingWorldNews:

Today a legend in the business told King World News, “… we are going to see an incredible squeeze,” in a key commodity that nobody is watching. Keith Barron, who consults with major gold companies around the world, and is responsible for one of the largest gold discoveries in the last quarter century, also said this commodity is, “… going to go parabolic.”

Barron also said we will see $2,000 gold within months. Here is what he had to say: “Certainly the gold price has been moving up nicely over the past couple of weeks. Part of this rise has been in anticipation of this Jackson Hole meeting in a few days time. Everyone is expecting that Bernanke is going to come through with an announcement for QE3.”

Barron continues @ KingWorldNews.com

1 comment to Expect $2,000 Gold & A Massive Squeeze In A Key Commodity

  • Ed_B

    “Certainly the gold price has been moving up nicely over the past couple of weeks. Part of this rise has been in anticipation of this Jackson Hole meeting in a few days time. Everyone is expecting that Bernanke is going to come through with an announcement for QE3.”

    While that is certainly possible, I see it differently. The Fed does not have a lot of ammo left. I do not think that they will do more than 1 more QE program and that they are saving it until they really need it. Right now, we have an election coming and the Fed is loathe to be seen as the influencer of an election. Also, with the US Stock market now near 4 year highs, what possible reason could there be for another QE that primarily inflates stock prices? None that I can see. Instead, Bernanke will take a page from his European counterparts and jawbone the situation rather than actually doing anything about it. Where central banks are concerned, talking is often more effective at achieving their ends than implementing a new stimulus program.

    Also note that each successive QE program has resulted in less and less effect. Bernanke desperately wants to avoid a situation wherein he announces a new stimulus program and the market fails to react to it in any positive manner. That really could happen, so best not to test it.

    If this gold price rise is predicated upon additional QE that doesn’t come, gold prices will take a considerable hit as the weak hands bail. They could even test the relatively recent $1520s lows before 2012 ends. If they do, back up the truck and buy gold hand over fist!

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