Gold: $300? or $3000?

April 19 - 21 marked the dates when over 30 different newsletter writers, investment advisors, stock analysts and mining-related company representatives met at Chota Falls in Clayton, GA, to discuss the future of the resource market and related alternatives in front of an investor-oriented audience numbering nearly 200. The conference itself featured over 25 speakers who covered almost all topics of investment, but emphasized the current climate of high and rising commodities as well as natural resource prices.

When asked about their predictions for short-, medium- and long-term gold prices, most speakers gave ranges of $700/900 for gold. However, Brien Lundin, editor of the “Gold Newsletter” noted that the previous highs of $850 gold and $50 silver in 1980 would be equivalent to about $2200 and $120, respectively, in 2007-inflated dollars, but refused to make an exact prediction. Pam Aden of the renowned Aden Sisters and co-editor of the “Aden Forecast” newsletter, remarked that the huge liquidity [money supply] created by the Federal Reserve to fuel the previous stock and real estate boom had now rotated to the precious metals and natural resource sector. Also, huge industrial as well as jewelry demand from Asian countries, especially China and India, was exacerbating the price situation. Rick Rule of Global Resource Investments urged potential investors to look not only at high metals prices but carefully research management quality when purchasing resource stocks. Bob Bishop, retiring editor of the 25-year “Gold Mining Stock Report,” noted that rising demand, decreasing supply as well as uncertain geopolitical events bode well for the future of the yellow metal.

Overall, the vast majority of the editors were cautiously to extremely optimistic on the metals prices for the short, medium and long term. Many noted that the widespread rally also encompassed base metals such as copper, zinc, nickel, uranium and aluminum. Most, however, cautioned that a financial accident, negative geopolitical events or fast-rising interest rates could derail or at least stall the rally.

Sponsored by the Friends for Autism Foundation, the conference was originally the brainchild of the late Jim Blanchard as well as Martin Truax, the current leader, in the mid 1980’s. Held for many years in Atlanta, the investment conference was moved to the Clayton, GA-based CHOTA Falls private estate in 2000. All profits from the event go to benefit the foundation which seeks to improve the lives of children and adults affected by autism.

Bill Nefsky owns WFN Enterprises, Inc., is involved in the jewelry industry and works for /and or consults with store owners, banks, attorneys, appraisers, manufacturers and refiners. He writes occasionally concerning the economic issues surrounding precious metals and their potential effect on the jewelry industry.