My Target on Gold ...
For a couple weeks, I've been annoying people within earshot by saying that, "if gold closes above $820, it can go much higher."
Well, gold did close above 820. And then it went higher still. So today, Bruce Bragagnolo, the CEO of the gold company I visited in Mexico (which you'll be able to read about in MoneyandMarkets tomorrow), asked me, "so how high is gold going now?"
There are those who believe that the Deflationary Spiral of Doom (catchy, eh? I'm going to copywrite it) is going to suck gold down with it. So I hesitate to name a number.
But the only people who read this blog are subscribers to my services and a few friends. So I'll tell you. My target on gold is $980, and I think we can get there rather quickly. There is no magic to this -- I get my target from a simple point-and-figure chart, which you can find at any one of numerous charting sites.
Point and figure charts famously do not include "time" in their projections. But fundamental forces are lining up to push gold higher.
Longer term, my target on gold remains $1,100, though we'll probably see some backing and filling at $980 first.
And none of this MUST happen. These are just projections, and subject to change. As John Maynard Keynes famously said: "When the facts change, I change my mind. What do you do, sir?"
My even-longer term target for gold is just under $2,000. Keynes' other famous quote is: "In the long run, we are all dead."
Check out my new gold and energy blog at MoneyAndMarkets.com