Goldman
Sachs expects the dollar to plummet following another round
of quantitative easing and has raised its forecast for the gold
price to $1,650 per ounce within the next 12 months.
"With the prospects for another round of
quantitative easing in the United States increasingly strong,
US real interest rates continue to fall. With 10-year TIPS yields
now below 50 bps, we expect gold prices to continue to climb,
and we are now raising our 12-month gold price forecast to $1,650/toz.
We also recommend opening a long Dec-11 COMEX gold position."
The move translates to a forecast revision of
more than 20 percent, with the investment bank expecting gold
to hit $1,400/toz, $1,525/toz, and $1,650/toz on a 3, 6, and
12 month horizon.
"The return to quantitative easing will likely
be a strong catalyst to drive gold prices higher, and we expect
the gold price rally to continue until US monetary policy begins
to tighten." the report read.
Goldman has consistently
lobbied the Federal Reserve to initiate a second
round of QE, (to you and I that means central banksters creating
money out of thin air) fully acknowledging the long term weakening
effect this would have on the dollar.
The Goldman report also stated that gold could
rally for an "extended period," suggesting that it
could take until 2015 or longer before an interest rate hike
becomes "appropriate,".
The bank noted that it expects the Fed to announce
upcoming QE measures in the first week of November at the scheduled
Federal Open Market Committee meeting.
"We see this acting as a strong catalyst
to carry gold prices to the higher levels that we now forecast."
the Goldman report stated.
Following the announcement, gold climbed for a
second day, hitting $1,348.88 an ounce while silver advanced
0.3 percent.
Futures for the yellow metal are now up by an
incredible 20 percent this year, putting it on course for a
10th consecutive year gain, the longest surge the metal has
seen for some 90 years.
Gold still has the potential to make more huge gains, as highlighted
by the fact that today's prices are still way off all time highs,
recorded in 1980, of close to $2,185 an ounce measured in dollars
adjusted for inflation.
Should rampant inflation occur, caused by out of control money
printing, and initiate a full blown dollar crash, experts such
as Omnis senior managing director James Rickards predict that
gold prices will soar beyond anything imaginable.
Rickards recently forecast that the precious metal could reach
anything up to $11,000 in the aftermath of a dollar collapse.
As Jim Rickards explained during a recent CNBC interview, forecasts
for gold to hit $5,000 an ounce are entirely realistic, given
the fact that if the gold standard is reintroduced, it will
have to be set at an accurate inflationary level against the
dollar:
The dollar continues its downward spiral this
week, hitting a new 15-year low against the yen and trading
at a near eight-month low against the euro on speculation the
Federal Reserve will buy $1 trillion of government debt.
Reports
have also suggested that the Fed, via its subsidiaries
such as Goldman Sachs and JP Morgan, are shorting "paper
gold" while at the same time buying up exclusive rights
to producers’ future physical gold production in an effort
to keep a precious metals ponzi-scheme alive.
——————————————————————
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It’s time to protect your wealth with precious metals.
Gold and silver have staged one of the best ten year runs in
history and captured the attention of millions of investors
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The last decade may soon be written in history as what jump
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Your financial future is too precious to postpone. Don’t
delay!
Steve Watson is the London based writer
and editor at Alex Jones' Infowars.net, and regular contributor
to Prisonplanet.com. He has a Masters Degree in International
Relations from the School of Politics at The University of Nottingham
in England.
Goldman
Sachs expects the dollar to plummet following another round
of quantitative easing and has raised its forecast for the gold
price to $1,650 per ounce within the next 12 months.
