Who believes that Gold will hit $1400/ounce in 2016?

Question

Just curious to see how many of you here think that Gold prices will reach $1400/ounce this year?

Brian Lacey · Answer

Fed is going to stick to their guns on the rate hikes, or by reversing course they admit that they were wrong. The market needs QE, investors are losing confidence. Tech is popping again, and gold will rise as the safe haven.

I agree with you @James Park

James Park · Answer

Here is how I see things playing out. I like to be a contrian thinker and I think that most people believe that we will see couple more rate hikes this year that was first initiated in December after 9 years. I think that the rates hikes may not happen or if it does, it will be raised a lot less than most peope think. What I do think will happen is that the FEDs will reverse course for more quantative easing to QE3 second half of the year. I am making a bold prediction that Gold will hit $1400/ounce in 2016. Mortgage backed securities are also much safer today than they were during our last mortgage crisis. I am feeling more secure investing mortgage backed securities, not the brick and mortar, but financial mortgages. Again the risk is rising interest rates, which I believe will be a lot less than most people believe.

Oil prices dropping below $30 is going to put more money in a homeowner's pocket. Real Estate is local in nature where I can see some parts of the real estate market depreciating in value while other under valued areas will appreciate in value in 2016.

Below you can see the long term chart of Gold & Silver. CEF is a closed ended fund trading 10% below Net Asset Value.

Wilson Churchill · Answer

To make my $$$$ grow. I have to do something with my cash reserves. Paper assets are very liquid, so I can sell whenever I need to.

A revolver? I would rather have a semi-auto .30-06 with AP ammo.

David Faulkner · Answer

To what end? Are you planning on acquiring some to store under your mattress next to the revolver? Gold doesn't pay rent, and if there is a complete financial meltdown that revolver will be more valuable than the gold, so I personally see no use for the stuff ... What am I missing?

Wilson Churchill · Answer

I am betting more on silver than gold, though I expect both to gain some ground as central banks (including the Fed) start to implement or consider negative interest rates. Also, the gold/silver is out of whack. A have a position in USLV that is doing well for the time being.

Richard Dunlop · Answer

I also said I didn't know whether it would reach $700 or $2000 first.

Will December 31 see it closer to $900 or $1400?

As you know it is played more with emotion than reality.

I do know no matter what the returns, gold cannot compete with the 300% I set as the minimum first year return for any real estate investment I make.

James Park · Answer

@Brian Lacey,

So you are under the impression that Feds will raise rates in March not to lose face? Feds hiking the rates in March will strengthen the dollar and gold will fall. The commodities cycle peaks every 30 years : 1920, 1950, 1980, 2011. I do not think that Gold will surpass the last April 2011 30 year cycle peak of $1920/ounce. Gold was priced at $35/ounce in 1971 and peaked in 1980 at the price of $850. 30 years later, gold bottomed at $280/ounce in 2001 and peaked at $1920/ounce on April of 2011. The big question is whether going to see another low of Gold breaking down below $1000/ounce again. Gold plays two roles: 1) insurance to fear 2) as a currency which usually does not perform very well in a deflationary environment.

Matt R. · Answer

Is not gold $1200 today? I say it will hit 1400 with 90% confidence.

James Park · Answer

@Richard Dunlop, you are thinking that Gold will hit $900 this year with an equilibrium price between $775-$825.

@Tommy Dang says gold will do down t $800 this year.

@James Park, I say we are going to see Gold reach $1400 this year. The US dollar and the Euro will also hit parity, but I am not sure of the exact timing.

Michael Ahrens · Answer

How do you guys feel about the current silver prices? As apposed to its "equilibrium" price.

Who believes that Gold will hit $1400/ounce in 2016?

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