From the Sept. 16 Numismatic News E-Newsletter:
Do you think gold will reach $2,000 an ounce by the end of the year?
Here are some answers sent from our e-newsletter readers to Editor Dave Harper.
Yes, I could see gold going to $2,000 by the end of the year. Nothing is getting better with the economy. No one has a cure for our problems, we just keep getting deeper in debt. Gold and silver will keep going up for a long time.
Daniel Sheffer Utica, Mich.
I do believe gold will reach $2,000 by the end of the year. Then the “investors” will sell their shares off and the price will drop back to about $1,750. I don’t believe the price will drop any lower than $1,500.
Bill Tuttle Cleveland, Ohio
No, I think the world governments will step in and stop the advance. Remember, “gold is a barbaric relic of the past.” And if you believe that, then you must believe that money grows on trees like it does for the politicians. If we cut off paper supplies to the Feds, they would use their undies to print more money and tell us money is still better than gold.
Arthur Solvang Brooklyn, N.Y.
No, I think gold and silver will hover around where they are right now for a while. At least I hope so. Any higher and it will take effect on my fall wish list I’m sure.
Already, my uncirculated silver Eagle subscription was a little more expensive this year than I anticipated after getting the proofs for less than the uncirculated coins, and silver hadn’t even moved much in between releases. Also with the release of the sixth America the Beautiful coin this week, which for some reason the price remained the same, and talk of the 25th anniversary silver Eagle set coming out in late October, it would be nice to have a little cash left to spend at the local coin shows that started this weekend.
Also, I would like to add a note to the editor. At the time of the question on the “S” mintmarked silver Eagle in the 25th anniversary set, I did not know they intended on putting an actual “S” mintmarked silver Eagle in the set. This being the case, I am all for an actual mintmarked coin in the set. When I first read the question, I thought the Mint was trying to capitalize on the phantom “S” mint coin from San Francisco.
Thanks for the best numismatic paper in the hobby.
David Tortorice Buffalo, N.Y.
I am no Einstien, nor am I a fortune teller. All you have to do is watch the evening news or read a daily newspaper and you can tell where this country and others are headed: straight down the tubes, literately and figuratively. So yes, gold will only continue to rise in price per ounce, if only as a safe haven.
Any person will put his money on gold versus the stock market. Nowadays gold Eagles are eligible for deposit in IRAs or 401(k)s to use for a “rainy day” and with the physical demand from foreign countries at a feverish level (just what do they do with it all?), $2,000 by year’s end should be no problem.
Michael P. Schmeyer Halsey Valley, N.Y.
This is a good question. I’ve been watching the global economy very closely and it appears to me that a lot of the European countries are in very bad financial shape, perhaps even more so than the U.S. economy. So, with that said, I think the price of gold will continue to rise. However, I’m not sure it’s going to reach $2,000 an ounce by the end of this year, but I do believe it’s going to reach over $2,000 per ounce during 2012.
Larry W. Young Tyrone, Ga.
I think gold may hit $2,000 before the end of the year, but I don’t think gold will remain at $2,000 at the very end of the year.
James D. Santeufemio Sr. Pittsburgh, Pa.
Do I think gold will reach $2,000 an ounce by the end of the year? That’s hard to say. In a way, I want to say yes, but gold prices could continue to weaken into next week as nervousness over European banks eases somewhat. Technical chart patterns turn short-term bearish and investors turn to riskier assets like the stock market. I had hoped that silver would get to that price before gold did.
Strength in the U.S. dollar may also put pressure on gold. The big factor for the financial markets, metals included, will be the Federal Reserve monetary policy meeting set for Sept. 20-21. Market watchers who expect the Fed to announce some sort of stimulus program said that could benefit all markets, including metals.
European banks selling gold to raise dollars have also pressured prices. Should we be encouraged to hoard more gold or hold off, collect wooden nickels and wait and see? Right now it’s on a roller coaster ride. And I broke my crystal ball. Darn it.
Chuck Schroeder St. Petersburg, Fla.
I hope gold and silver settle in the $1,800-$1,900 and $38-$50 ranges for the rest of the year. Every time the price hits new highs, I hope our dollar strengthens and prices drop again. Gold over $2,000 and silver over $50 would put a serious dent in my numismatic budget’s purchasing power. I would rather see a stable dollar.
Don Cantrell Address withheld
I don’t know. If I did, I’d be a very rich man. With about three and a half months left in the year, anything could happen. It does have a good chance to make it to $2,000 by Dec. 31. We’ll just have to sit back and enjoy the ride. Though gold at $2,000 means that the dollar will be devalued even more. Since our economy is based on the dollar and not gold, that’s not good for my pocketbook.
I believe gold will reach $2,000 but I’m not sure this will happen by January 2012. Some economists are predicting another recession (I’m not really sure we ever came out of recession.) and economic indicators are not yet strong, so I would think gold would continue to rise. Also with 2012, there will be the alarmists referring to the Mayan calendar, etc., that will spur gold buying.
Ask the right question: Will Federal Reserve Notes decline in their value to send gold over $2,000?