From the June 13 Numismatic News E-Newsletter::
Q. Will gold prices hit $1,000 an ounce again in 2008?
My crystal ball says that gold will exceed $1,000 and, indeed, will come near $1,100 during 2008. Why? Due to the decreasing value of the dollar.
The $50 billion or so created out of thin air and recently sent in the form of $1,200 checks to taxpaying couples is just one of the many factors making the dollar worth less. Since it takes a while for the effects of dollar depreciation to be felt, I would guess year?s end would see the beginning of an accelerated drop in the dollar and a corresponding rise in the price of gold.
Wait until the demographic tsunami of the Baby Boomer generation expects ?their? benefits from Medicare and Social Security in a few short years, and they find that there is no money set aside for them, just politician?s promises which will be paid off in some combination of higher taxes, reduced benefits, and/or an inflated currency. Let?s see where the dollar ? and gold ? go then!
Yes, by mid-November gold will go over $1,000.
Wendell Lee Bryant
Sierra Vista, Ariz.
Yes, I believe gold will go past $1,000 an ounce. If gasoline goes past $5 a gallon, gold will go past $1,500.
Donald D. Winner
Yes, I believe gold will break $1,000 once more if we continue in the present direction of the economy. We are in an inflationary time and it is getting worse, but until our government stops spending money we don?t have, it will keep getting worse, and it is because of this that I believe gold and silver will be much stronger as the weeks go on.
Nope, not unless a new war breaks out. That price was sold into by those who had previously bought gold at the $800 level 30 years ago. At least they should have done so. Now those investors are kicking themselves for not taking advantage when the time was right. Many more will take advantage and sell into that market if it comes around again, so more selling than buying will occur I think.
Let?s be clear on this. Although in inflation dollars the price would seem too low now, we have to remember that the Hunt brothers played a large part back in 1980 pushing the price of gold past $400 so that price was exaggerated to go over $400 an ounce. I guess if you use the $400 as the rule, then the current $800-$900 is the price in inflated dollars. Any price above that is speculation only.
There will always be speculators but not on the scale as what those ?poor? Hunt brothers were and then there is always that truth that our government can, at any time, step in and change the rules on speculators, as they should now on oil speculators.
Since gold hit $1,000 it has been see-sawing between $875-$930 per ounce, so yes, I believe that when the next run occurs it could go well over $1,000 per ounce and this time stay there for more than one day. If it occurs this year I believe that it will be in the fall as the summer months are usually slow. I try to check the price every Friday because you could get sea-sick watching the metal market more frequently.
Yes, gold should hit $1,000 by December. I think it will flounder around for another month or so, then start its climb as it usually does in the fall. I have been watching the metals for about 10 years. In any given year the low is usually June-July and the peak is usually in early December. Last year the high was in May, but gold rallied up in December. Time will tell.
West Palm Beach, Fla.
A gnawing question... since whenever the US Dollar shrinks a little bit more, each time, gold seems to climb a little bit higher. The volatility of this gold market is like steam wrestling with a cold snap..
When I heard that Abu Dhabi is buying the Chrysler Building, there was an emotional reflection. Is New York City being gradually sold out ? Will the Price of gold skyrocket as New York City is leveled ? This is just Phylosophically speaking, of course.
The consensus of opinion within the inner circle of those that are more familiar with economics, seems to indicate that the price of gold is leaning in that direction..but it?s another speculation whether or not it?ll happen in 2008.
If the economy continues in the current direction... gold will gradually continue to rise in my opinion..but if something good happens for this country.. the end to war, an incredible idea to solve our energy problem, and solutions to some other major problems...something to bolster, uplift the confidence of the American people, which will in turn expand the American Dollar and the theory that progress is our more important product ; then it?s my humble opinion that gold will gradually decline in price.
It?s difficult to remain optimistic sometimes... It appears to be a ?Winning for Losing? situation..Winning the economy back and Losing our hunger and thirst for gold,,, or ?Lose to Win? Lose more of our Dollar Power to Win with gold by its price rising skyward.
Thanks for a question to raise our consciousness, Dave.