Gold This Cycle To Go To $3,000

According to a highly respected Canadian analyst David Rosenberg of Gluskin Sheff, a prominent wealth management firm, this cycle we can expect gold to go to $3,000 an ounce.

Yesterday’s news of JP Morgan Chase’s billion dollar blunder is shaking up further Wall Street’s position for showing continued lack of reform at the same time increasing its image as a casino investing operation.

The market news has carried over into the gold market in its equities as it shows itself in the correlation of short term risk assets. Along with sell offs across the board of risk assets such as equities, industrial metals and oil. The result being COMEX selling gold in order to cover the losses sustained from yesterday’s news.

In the physical gold market, the weaker market resulted in Thailand, Indonesia and India buying more gold bars which resulted in a spot edge London market increase of $1.10 from the Thursday quoted prices from $1.0.

Although, LBMA 2% price decline over this past week of the precious metal from 1233.83 (euro) to 1214.73, gold prices have still experience eleven consecutive years of price gains abroad in spite of lack of media coverage and dismal participation by the western nations.

Gold market prices in the United States since records have been kept from the Civil War has shown a steady increase over the years and even during major historical events.

The aftermath of the recent Wall Street billion dollar loss will sutra gold to its 12th consecutive term increase as investors seek the precious metal and spur its demand. All to stabilize the eurozone nations in a severe debt crisis and now the U.S. economy and investment markets loss. This message also being conveyed by the World Gold Council (WGC).

“We believe this will be the 12th year of a bull run by the end of this year,” Marcus Grubb, managing director for investment at the industry funded WGC, told a news briefing.

David Rosenberg in his Financial Times video interview
mentions that gold “will go to $3,000 per ounce before this cycle is over.”

This is critical news at this time due to the current gold market situation and also short-term yielding investments. The longer we experience Wall Street’s continuing lack of reform position and Europe’s economic times in a negative position, the longer there will be a bull market for gold.

Rosenberg sums up that “this is not about being bullish or bearish, it is about how do we make money for our clients.”

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