THERE’S NO FREAKIN GOLD BUBBLE, OK?
“No one knows when the bull market in gold will end.” Richard Russell
In my last TAL, I said not owning gold in the current gold bull market is insane. Then I thought, wait, maybe some folks
Archive for March, 2011
Gold’s Hyperbolic Trajectory
March 28, 2011 – I am not a mathematician, but those knowledgeable about math have explained to me the difference between a parabola and a hyperbola. I’ll cut through the math to get to the key point. A hyperbolic rise in price is much faster than a parabolic one.
This distinction is important because the gold price in recent years has been rising at a hyperbolic rate, which is illustrated in the following chart.
The above chart has been prepared on a log scale so that, for example, the distance between $250 and $500 is equal
Gold Price: Short, Mid and Long-term Outlook
Gold hit a new all time high on March 24 when it closed at $1,447 per ounce in London. Gold is up 33% compared to March 2010 and 450% compared to March 2001. Silver hit a 31-year high, reaching $37.78 per ounce. Silver is up 127% from March 2010 and an unbelievable 770% from March 2001. Here is a brief recap of the most significant short, mid and long-term driving forces behind these price developments: Continue reading
Goldman: Gold $1,480 in Next 3 Months
Optimism over the state of the global economic recovery at the start of the year, which drove US real interest rates sharply higher – and gold prices lower – has been tempered by the ongoing events in the Middle East and North Africa (MENA) and Japan, sending the 10-year US TIPS yield down to near 80 bp, setting the stage for the next gold price rally.
We expect gold prices to rally toward our 3-month price target of$1480/t oz, and continue to recommend a long gold trade. While the protests and threat to oil supplies in the Middle