I have put a similar article in the other post, attached...

I have put a similar article in the other post, attached herewith the updated post with spelling of a country corrected.

Article below I hope will provide a balance outlook to what posters has published here about the very short term gold price.

There are prediction as below that the recent pullback in gold prices will likely be SHORTLIVED and outlook is BULLISH(GOOD NEWS) for gold not only long term as posted here, but next 12 months.

Like any stock or commodity, there will always be adjustment. So Gold is no different. Let's see what pan out of this gold price adjustment before jumping to conclusion on the gold price moving forward.

Gold is a "safe haven" for investors. Whenever the world has problem/crisis or major uncertainties like economic issues, they run back to Gold. And just because it is a new year, 2011 doesn't mean the world problems of 2010 disappears, US economy in flaundering and there are experts out there that are still saying that there is likelihood of US going into double dip recession, Euro Sovereign Dept still lingers waiting to explode (i.e. Spain & Portugal to name a few - much bigger economy are still having problems with sovereign debt, which means bigger problem than Ireland or Greece which were rescued last year), Some Banks in Europe are not doing to well with their debt, On and Off troubled states like Iran/North Korea/Pakistan to name a few are creating international crisis.

In addition to that I have read, the some Reserve Bank are increasing their gold reserves.

Based on the abovementioned points, my opinion is that I tend to agree what has been written by an expert below, that gold price adjustment is shortlived.


January 7, 2011 10:24 am

The recent pullback in gold prices that has seen the yellow metal fall 3.5% this week will prove shortlived, according to the latest outlook from Nick Barisheff, president and CEO of Bullion Management Group Inc.

Mr. Barisheff believes the price of gold will climb to US$1,700 to US$2000 per ounce over the next twelve months, representing a gain of at least 20% from the Dec 31 close of US$1420.

Without any new financial crisis, both mid-term and long term trends are in place to ensure gold and silver will continue rising through 2011 and well beyond, he said Wednesday at the Empire Club of Canadas 2011 investment outlook luncheon in downtown Toronto,

The catalysts that will impact gold nearer term include a weaker U.S. dollar, increasing demand for gold in China, both official and public, and more central bank buying by most of the BRIC nations.

[They] need to acquire gold to bring their gold reserve ratio to outstanding currency closer to Western central banks, he said.

Longer term, Mr. Barisheff noted three irreversible trends that will continue to boost demand for gold; an aging population, outsourcing and peak oil.

These three mega trends will continue to lower the GDP, lower the tax revenue, create higher trade deficits, create higher unemployment, resulting in the need for further currency creation, he said.

This will cause inflation to rise as currencies depreciate in value and create higher universal debt. All of this means the gold price will continue to rise.


Read more: http://business.financialpost.com/2011/01/07/unstoppable-gold-could-hit-us2000-this-year/#ixzz1ATlXExd0