Hi.--Jim Sinclair of JSMineset reckons gold will shortly reach $1650 US and then progress higher from there---He,s been right so far on every forecast that he has made with the economy.. He was forecasting the collapse of the American financial market due to toxic derivatives at least 3 years ago.
He forecast Gold would reach $1650 when it was still languishing at $500 (if only I,d listened) and judging what has happened in Dubai and from various statements emanating from Europe –such as. ------------------ Dominique Strauss-Kahn, the head of the International Monetary Fund, told Le Figaro on Wednesday that banks worldwide have so far admitted to just half of the $3.5 trillion (£2.1 trillion) of likely damage." Bundesbank fears relapse as German banks face €90bn fresh losses
The Bundesbank has told German banks to take advantage of renewed confidence while they can to prepare for likely losses of €90bn (£81bn) over the next year, warning that the delayed shock waves of the economic crisis still pose a major threat to global recovery and bank finance.
25 Nov 2009
The venerable bank said in its Stability Report that the world had narrowly averted a "virtually uncontrollable" collapse in the late summer of 2008. While the credit system has partly stabilised, the underlying problems "are still far from being overcome" and money markets are not yet functioning properly.
"It is already clear that the financial system will be severely tested going forward. Downside risks remain pre-dominant," said the report.
The danger is that a long phase of stagnation and rising job loses in the West sets off "spiralling loan losses in both industry and in the residential and commercial real estate markets. In such an unfavourable scenario, negative feedback between the real economy and the financial system could gain added momentum."
The Bundesbank said the next wave of bank write-downs will come from loan book losses as the default rate on lower-tier companies tops 14pc in the US and 12pc in Europe. German banks alone will have to write down €50bn to €70bn of loans over the next year. ------------------------------
Thats all scary stuff and when you see the demand for gold and silver increasing. Gold in the black market in Vietnam is sold at $1344 a once (a 13% premium to today´s spot price)
US Mint runs out of Silver and gold eagles until December 15th-19th.
NEW YORK (Reuters) – The U.S. Mint said Wednesday it will suspend sales of the popular American Eagle 1-ounce bullion coins as rising demand depleted its inventory.
"The United States Mint has depleted its current inventory of 2009 American Eagle 1-ounce gold bullion coins due to the continued strong demand for this product," the Mint told its authorized dealers in a memorandum on Wednesday.
November sales to date were at 124,000 ounces, higher than the 115,500 ounces sold in each month of September and October, the Mint said.
The Mint said it expects to resume sales in early December. ----
Gold production will continue to fall, despite a brief boost in 2009 and soaring prices, as deposits are exhausted and new discoveries remain elusive, say miners.
In terms of production, "2009 is the outlier as far as the trend," Omar Jabara, spokesman for US-based Newmont Mining, the second-largest gold producer in the world, told AFP.
Overall, "it’s a fact that gold production from mines has been in decline since 2001 and has gone roughly from 85 million ounces to about 75 million ounces a year," said Vincent Borg, spokesman for number one producer Barrick Gold.
"It sort of goes down about one million ounces every year and our forecast is that it will continue to decline despite the higher price" for gold nowadays, he said.
I don,t know what everyone thinks but it appears to me that $1650 is rather conservative.
Most of this info was taken from Jim Sinclairs website who is considered to be one of the worlds greatest experts on the Precious metals market. Certainly worth a look.
