Its gold and silver price prediction time again! Here we are once again in the week before Christmas. Most traders have packed it in and are already on holiday. The metals markets should, and I repeat should, remain relatively calm barring any major geopolitical events. While this light trading week unfolds, I thought it would be a good time to take a look at gold and silver predictions and their ramifications.
The only ones actively working to change the world are the predatory legislators in the “lame duck” Congress. Just as they jammed “Obama Care” down our throats on Christmas Eve last year, they are attempting to disarm America through the Start Treat this Christmas season. (It is important to note that there are no holidays to the zealots of the Marxist ideology.) You have to hand it to the Marxist/Socialists, because nothing will stop them in their attempt to destroy the USA. Let’s all send out a Christmas prayer that the American people recognize the threat and turn the tide back towards freedom and liberty!
A Word About Gold and Silver price Predictions
This is also the season for predictions on the future price of both gold and silver. I have this gut feeling that all of the pundits will be way off the mark with this year’s predictions. The problems that face the prognosticators in 2011 have compounded for so long that the price swings will be so large that putting a number on them will be nearly impossible. The best prediction for the 2011 gold and silver prices will have to be the luckiest one and that will be decided after the last days market close of 2012.
We are rapidly approaching the complete break down of the global fiat currency ponzi-scheme. The potential is there for massive swings in price on a day to day basis. Jim Sinclair’s prediction of $1,650 gold by January 14, 2011 should be the “gold standard” of predictions, no pun intended. If he is two, three, or six months late, big deal! He has the most credibility of anyone out there.
My greatest fear is that one of the cogs in the wheels of world stability gets jammed and then all bets are off! Gold and silver prices will launch and the results will not be pretty for the world as we know it. We are far better off with a rational and controlled rise in the metals prices. The moon shot that many “gloom and doomers” are predicting would leave us with a “new world order” that no one would want to live under.
Remember what Rahm Emanuel said early in the regime of the “Obamunists”, “never let a crisis go to waste”. Keep that thought in mind when you consider a major crisis occurring during the the Marxist regime of Obama! Sometimes, what you wish for, namely a big spike in metals prices, will have unintended consequences that will make you rue the day that you wished for it.
Let’s take a look at a gold price prediction that comes to us from “across the pond”.
Gold price to cross $2,000 by 2012
Published on: December 21, 2010 at 16:05
LONDON (Commodity Online): Fed Reserve’s move to further pump in more dollars into the market and the looming European crisis will ensure that gold prices cross $2,000 mark in 2012, said Capital Economics.
As inflation fears mount, the price of the precious metal will be pushed to £1,600 in 2011 and reach $2,000 by the end of 2012, it has been forecast, as investors clamor to buy safe haven assets.
Capital Economics, a late converter to the pro-gold camp, says that fears of a China-US trade war and some sort of break-up of the European Monetary Union are likely to spook investors, nudging them towards the commodity as a store of value.
“We are increasingly positive on gold. A firmer dollar, fading inflation fears and greater risk appetite may limit upside in the next few months. But the price of gold should continue to be supported by demand for a safe haven from other potential economic and financial shocks,” Capital said.
This should see the price of gold hit $1,600 by the middle of next year and increase by a further $400 in the 12 months that follow, taking its price to $2,000, just shy of its $2,300 high hit in January 1980.
This was driven by a huge demand for gold as an inflation protector and Capital believes that although gold prices today will not face the same upward pressure, the highs of two decades ago will be rivaled.
Predictions: Let’s Use $2,000 Per Ounce for the 2012 Price of Gold!
Everything is pointing to a higher price in gold and silver in 2012. Predicting the exact high for the year is a secondary distraction to the overall “big” picture which is preserving wealth and profiting from this major bull market in precious metals.
I will play the game, if that is what you want, and make a prediction. Goldbug predicts $1,750 for the price of gold and $45 silver by years end 2011. Admittedly, my prediction is skewed by my desire to see the markets move in an orderly fashion based on the value of the dollar. I seriously doubt that my desire will be fulfilled.
Why We Need to be Wary Of Gold Price Predictions in 2011
The American public is beginning to see what time has wrought by ignoring their elected officials. They are beginning to see the damage that the Marxists are inflicting on their liberty, their freedom and they don’t like what they see. What they see is an administration and a Congress running a muck after being soundly rejected in the election of 2010.
This “lame duck” Congress is inflicting more damage on the American people than the administration was able to pass in the last two years. The Department of Homeland Security is way off the mark when they stated this week that the greatest threat to American security is the home grown terrorist. The greatest threat to American security are the “predatory legislators” of the Marxist/Progressive party!
Government takeovers by minority ideas always lead to uncertainty, turmoil and finally to a breakdown of the social order, which is exactly what the Obamunists want! Chaos allows them to remove freedoms and take control in the name of protecting the citizens. Chaos will destroy the capitalist system that made America the world’s best beacon of freedom. The dollar and gold are the measuring sticks of the health of the United States of America. Today we are running a high temperature, tomorrow it may go critical.
Everything that the current government of the United States is doing is based on acquiring power and control, nothing more. Health Care had absolutely nothing to do with improving health care services, but rather it was all about expanding government power and control over the American people. Time will prove me right on this point, as we learn more and more about the government takeover that is “Obama Care”.
Warning: Signs That Point To The Troubles Ahead!
Quantitative Easing Is Destroying the Dollar and with it The American Experiment
Number 1: Whether you call it QE-1, 2, 3 0r 4 for that matter, “quantitative easing” is printing money out of thin air and it dilutes the value of the dollar. To add insult to injury, we are now finding out that the money was spent on insolvent banks, (both U.S. and foreign) and various political payoffs to politician’s voting supporters. If the first $700 billion plus, namely QE 1, had been used to pay off mortgages, no one in the U.S. would have a mortgage and they would have been spending that extra monthly income in the economy, generating jobs and growth. Instead we have saddled future generations with a debt that will never be repaid.
The European Union Foreshadows what is Coming to the U.S.A
Number 2: The European Union is coming unglued under the weight of their collapsing socialist system. The basic problem with socialism is that, at some point, you run out of other people’s money. Europe is at that point right now, as demonstrated by the rioting at the mere mention of increasing fees for college tuition. This is only the beginning as more austerity measures will have to be implemented if Europe is ever to get back on track.
Only Germany seems to have the financial strength to resist the fleecing. But just when I think that Germany will take a stand, Wolfgang Schaeuble, the German Finance Minister, who appeared to be on the right track, is now reduced to repeating the one world government mantra: “The Euro Won’t Fail.” The German people don’t want to be left holding the bag for their neighbor state’s profligate spending.
If you think it can’t happen here, think again! As a whole, the U.S. is in worse financial shape than Europe, but the regime’s willing accomplices in the press won’t be telling you that until the wheels come off the government’s ponzi-scheme.
The Global Warming Myth Has Been Exposed!
Number 3: “Global Warming” has been exposed for what it is, a myth. Like health care, it is not about the weather, but rather the government controlling the way you live. It is interesting that now that we are experiencing record cold, the leftists that want to dictate how you live are changing the name to “Global Climate Change”. That way they can tax you no matter which way the weather vane blows.
Net Neutrality Is Not What It Appears!
Number 4: With the days numbered in the “lame duck” Congress and no congressional interest in stifling one of the few sectors of the economy that works and is actually growing, the Marxists were undaunted as they looked to unelected and therefore unaccountable, bureaucrats at the FCC to step in and take control of the internet. Once again, this is not about controlling prices, or accessibility for the American people as much as it is about getting the elephant’s nose into the internet tent so that they can control the free market and speech that is thriving there. Nothing good will come of this government takeover of the internet!
“Obamacare” is About To Explode The Myth of “Free” Health Care!
Number 5: More and more of “Obama Care’s” give away programs are going to take effect in 2011 in order to attempt to buy votes with the “benefits” of socialized medicine. Private insurers will be shutting down in droves as the government has made the industry untenable in their attempt to move to a single payer system. Health care cost are going to skyrocket as quality plummets. When the government takes away your right to your own body and its care, you are nothing more than a serf at best and a slave at worst.! Welcome to “Obamunism”!
Gold and the Dollar Will Reflect This Slide Into Tyranny!
I have listed only five of the troubling signs that are pointing to a very dismal future for Americans. There is no need to list all of them. These five are enough to totally destroy our free market system, which, by the way, is the intent. Gold and silver will chronicle the events that lay ahead of us in 2011, scoring each one with fluctuations in price. Individually, I doubt that they could bring down the U.S., but combined they spell disaster with a capital “D”.
As I said earlier, I hope that the devaluation of the dollar and the rise of gold will occur in an orderly manner, but I really doubt that will be the case. The Marxist/Progressives have every intention of bankrupting the U.S. with the help of the international bankers. Gold and silver will tell you if they are succeeding.
We can only hope that the “Tea Party” movement is just getting started and that America can be restored to its rightful place as the most free and greatest nation on earth.
Get ready for a rough ride with huge price swings as we move through 2011. Don’t let the daily price moves take your eye off the big picture. Gold and silver will be significantly higher by the end of 2011. No matter what price prediction you favor, the big picture is for higher prices.
Till next time, MERRY CHRISTMAS, good luck and good trading!
More Gold Market Analysis:
- Gold Predictions
- A Gaggle Of Gold Predictions For 2014
- Jon Nadler: Bearish on Gold & Silver?
- Arthur Laffer’s Predictions
- The Silver Christmas Present