ZLATO - $1100 v 2008

All right then – if I'm so clever, and I ‘get it’, then what are my gold price predictions for 2008? Here we go. A low of $725, a high of $1,100 on a spike and an average price of $850. No, hang it, $900 average. I can't wait to see Ross Norman's predictions though – and I might well revise mine after I've seen his.

Last week, we had that well known advocate of sound money Ben Bernanke cut interest rates. Gold went down. We had some shocking producer price inflation figures. Gold went down. We had some rubbish consumer price inflation numbers. Gold went down. I sometimes wonder if it's me that doesn't get it.

When belief in $800 gold becomes more concrete and stable we will see the miners turn back up. Just now it looks like they want to return to their August lows (the juniors are already there), even though gold is a whopping 20% higher.

Zdroj: MW

04.01.2008

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value."   Alan Greenspan