Why Gold Will Jump from $1,000 to $2,000 in Short Order
Source: Greg McCoach, Gold World (4/29/08)
...At last look the US Dollar Index was just over 72. And we're getting to that critical 70 benchmark, which, once broken, I believe gold will start having $100 up days instead of $20 up days...
When you consider liquidity problems in the market, derivatives, the adjustable rate mortgage dilemma on the heels of all of this subprime mess...just to name a few...it's clear that we've got some major problems to deal with. And the outlook for gold is stronger than ever.
We have the US dollar hitting a all-time lows against many other currencies. At last look the US Dollar Index was just over 72. And we're getting to that critical 70 benchmark, which, once broken, I believe gold will start having $100 up days instead of $20 up days.
Outlook for Gold and Junior Mining Stocks
Needless to say, I'm very bullish on gold. In fact, I think gold prices may move from $1000 to $2000 an ounce in a matter of six to eight months, depending on how the issues with the dollar pan out from here. So be prepared.
However, junior mining stocks are in a real funk. There's no denying it. And I think that we're going to stay in that funk until we get past the capital gains taxpaying season. After that I think higher precious metal prices are going to start pulling junior mining stocks out of the trough and moving them much higher...
I predict the metals market will be in a bull market for at least 10 to 15 years. The outlook for gold, other metals, and commodidties as a whole are still very strong. Don't drop out yet. Stay long on gold and precious metals.