gold

Got this Money Week email earlier today. May be of interest, but can't paste graphs.

COUNTER MOVE #3:

As gilts fall, ride gold all the way to a possible $2,230... or even more!
Here at MoneyWeek we first recommended our readers buy gold in November 2001.
Back then it traded for under $290 an ounce.
Today it’s around $1,650.
That’s an incredible 468% rise.
And of course it begs the question... is gold still a “buy” today?
Our opinion is simple: Yes. I’ll show you why. But first, consider this…
Since the start of the last decade, just holding gold would have quadrupled your wealth

Source: Bloomberg
It makes you wonder, how many thousands of hours did stock analysts slave away in the walls of the Square Mile?
How many hedge-fund managers crunched numbers late into the night?
And how many billions of pounds got blown on financial advisory fees… before somebody figured out that this one simple move could beat them all?

From 1999 until now, all you had to do was own gold — and without the help of a single fund manager or expensive advisor, you could have more than quadrupled your wealth.

Impressive? Go back over the last 25 years and you’ll find something even
more surprising…
…the single best year for stocks produced only a 31% gain.
…while gold had a year with gains of 100.2%.
…and precious metal coins topped the charts at 198.8%!
Now I’m sure you’re asking, after such a run, is this already over?
No. In fact, we think it still has a long way to go yet...
Why we see gold climbing higher still

Gold: The bull market has much further to go
In times of crisis, investors tend to flock to gold…
And in the face of the UK’s possible Gilt collapse, we think right now is the perfect time to stock up on the precious yellow metal.
During the 1970s and early 80s, the yellow metal soared 2,329%.

We’re not even a fraction of that move today — at around just 500% in gains since 2001.
Remember, we’re predicting a lot more turmoil in the markets, a crashing euro, and the downfall of one of the world’s biggest economies.
A lot of people are going to look for safety. And in the world of investment, there’s nothing more comforting than having your money stored in gold. So we expect demand to take a big upswing.

If gold was to rise today from trough to peak by the same percentage move as it did in the 70s... you’re talking an eye-popping gold spike to $23,450 per ounce.

Now, we’re not saying it will go anywhere near that high.
In truth, we pray it won’t.
Because to see that happen, all hell would need to break loose.
But the fact is… today, we’re locked in a period of intense confusion.
And that’s why gold is headed up, in our view.
We can’t predict the future and as you are fully aware, the price can go down as well as up.

In fact, in the short term it may waver… but our expectations are that you will look back in 12 months and be somewhat shocked by its steep climb.
Recovery, some say, will boost consumers’ appetites, resulting in higher inflation and a higher price for gold. If we fall back into recession, say others, central banks will print more money and gold will rise anyway.
In short, if the economy improves, gold rises naturally. If it doesn’t improve, the authorities will force it up.

Either way, we think gold will go much higher than it has so far.
How high?
Adjusted for inflation, the 1980 gold peak of $850 gives you a price of $2,230 still on the horizon today.
That’s more than enough for you to make a potentially huge profit on the next gold move.
But it could go higher still.
And right now some of the world’s most renowned gold experts agree.

• Roger Wiegand of Trader Tracks says, “we forecast gold at a minimum price of $2,960 with a probability of much higher prices... Gold is the only real money in the world and its rally has barely begun.”
• Mining maven and gold expert Doug Casey thinks it’ll go even higher — according to him we’ll see $5,000.
• Gold expert and best-selling financial author James Turk has said that as early as 2015, we could easily see gold at $8,000 per ounce.