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Message: Where Gold Is Going

Fellow Hubsters:

Gold is up 700% in the last decade and headed way higher according to Bud Conrad. This article from Casey Research and information like it could be a huge bargaining chip for management when the suitors come knocking. Remember it could take decades for them to dig to the bottom of the ovoid (if there is one). I wonder if the future price of gold will be priced in to the buyout number?

The link to the entire article is below this excerpt (bolding mine).

Rawkstar

The Long-Term Case for Gold

Given that the stars are lining up for gold to continue on the path of resuming its important role as a monetary metal - and given the almost certain collapse in the fiat currency systems that is heralding a return to that role - it is entirely possible that gold could rise at the same rate in the next decade as it has in the last decade.

Therefore, using the same growth rate and extending the gold price as a straight line on a semi-log curve, we can come to the resulting price at the end of the decade. Under this projection, by 2021 the dotted line rises from today's $1,825 to $12,500. (More detail on the method is contained in my book Profiting from the World's Economic Crisis in Chapter 15 on gold.)

The increases due to price inflation and the flight from fiat currencies to gold are combined in the above chart. I think price inflation has been relatively low in the last decade but will certainly rise going forward.

To reflect my forecast for higher price inflation, I separated the two components by calculating the rise in the real price of gold since 2001 and projecting that forward. I then projected a rise in CPI that eventually matches the rise in the inflationary 1970s, when it ultimately reached 14%, and then applied that data to the real price of gold, for a combined projection that is much higher. You'll see it below as the dotted line with a small curve upward for the increasing inflation that I expect over the decade. The result: gold could reach $24,000 by 2021, a decade from now.

http://www.gold-eagle.com/editorials_08/conrad112211.html

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