[Editor’s note: the following is a cross post that originally appeared on CNBC.com]:
In one of the most bullish gold calls since the Federal Reserve announced a new round of easing last week, one strategist sees a 36 percent jump in the metal’s price to $2,400 an ounce, by the end of 2014.
“The new target reflects our view that the Fed will maintain mortgage purchases until the end of 2014 and will move to buy Treasuries following the end of Operation Twist this coming December,” wrote Francisco Blanch, a global investment strategist with Bank of America Merrill Lynch, in a note to clients Tuesday.
“Given the new open-ended nature of QE3, the upward pressure on gold prices should continue until employment is strong enough to require a change in policy,” Blanch added. “In our view, this is unlikely to happen until the end of 2014.”
Last week, the Federal Reserve announced its third round of stimulus since the financial crisis, saying it would buy $40 billion in mortgage-backed securities each month.
The Fed used open-ended language in describing how long so-called QE3 would last, saying in its statement it would continue these purchases — and possibly employ other methods — until the outlook for the labor market improves substantially.
“The combination of open-ended MBS [mortgage-backed securities] purchases and the possibility of additional Treasury bond purchases starting in December could further lift gold prices by adding over $2 trillion to the Fed’s balance sheet over the next two years,” explained Blanch in his report entitled “Gold Under QE-Infiniti.”
Gold is up two percent since the Fed’s statement as others besides Bank of America pile into the metal on fear these actions may spark inflation and leave the metal as the only store of value in a world of paper currencies. Morgan Stanley also upped its gold forecast today, saying the metal would average about $1,800 an ounce next year.
“Since the Roman Empire, all fiat currencies have ended poorly,” said Guy Adami, managing director of StockMonster.com and a long-time bullion bull. “With that in mind, all roads lead to gold.”
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© 2012 CNBC.com, John Melloy
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Chenago
Sep. 19, 2012 at 10:06pmPart II From My FP:
IF there was a global crisis it is very difficult to know exactly how to invest. And more importantly we dont want to invest out of fear in areas that are not diversified.
An approach that could help is to invest in sectors of the market that have good exposure to hard assets or to companies who sell or deal in this sector. Customers may also want to invest in utilities, water and consumer staples as these areas tend to do well in recessions. You can also invest in mutual funds that focus on commodities and real estate on a global level. However, the more we focus on hard assets the more volatility and risk (generally on a year over year basis). In any sense, it is always important to make sure that the manner in which we invest still provides diversification and matches your tolerance for risk.
And just know that, in my opinion, continuing to invest in companies that provide goods and services that we as a public need on a regular basis, will continue to be a good source of diversification and growth that may also keep pace with inflation over time. So a solid strategy may be to look at companies and various types of hard assets that you could use in combination to provide some solid growth opportunities and potentially protect against some major inflation down the road.
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BloodSweatandTears
Sep. 19, 2012 at 12:31amOh Boy…So if you invest and then cash it in you break even…30 % rise and a 28% tax from Uncle Sam. What fun. I guess thats better than the inevitable rise in commodity prices at the super market and gas station though if you do nothing to hedge.
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TheePolitinator
Sep. 18, 2012 at 11:07pmIt’s all about trashing our dollar and making china the worldwide revered currency.
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Lagornai
Sep. 18, 2012 at 10:24pmWhat will stop the federal government from confiscating all gold as it did in 1933? (done by executive order which criminalized possession of gold)
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The_Obama-Romney_Ticket
Sep. 18, 2012 at 8:54pm“Analyst: QE3 Will Cause Gold to Rise to $2,400″
And even THAT is a severely under-priced gold-to-dollar exchange rate, which has been suppressed by the big wheelers and dealers while they snap up as much as they can. The gold guys predict the gold-to-dollar rate will “normalize” at it’s TRUE value … $5,000 per ounce! (That’s NOT the value of gold, rather the non-value of the dollar.) Better get out of all that paper-monopoly-money, people!
DO WHAT GLENN DOES:
“GLENN BECK TALKS GOLD! :: Don’t Be A WEINER! Save YOUR Cash From Obama’s World-Commie HEIST!!”
http://www.youtube.com/watch?v=qbINkYAezlU
Gold too rich for your savings? Silver is another monetary metal.
http://www.goldline.com/
http://www.roslandcapital.com/
http://www.learcapital.com/
http://meritfinancial.com/
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balrog25
Sep. 18, 2012 at 8:26pmNo one can predict the specifics, but everything points to some form of severe ugly. Prepare as best you can. If it is part of the Master’s plan then you’ll make it, just try to meet Him halfway. God bless.
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niterider
Sep. 18, 2012 at 8:22pmSeriously ?? Really ? Gold is up. Silver is up. Who cares. In 4 months the only thing of real value in America will be AMMO !! And when I need more….I ‘ll go into the bunker and make more. Gold my sweet ****. Can’t eat GOLD or defend yourself with Gold. “Rock, paper, scissors” game this is not. “Gold, silver, ammo” game: ammo takes your gold and silver every time.
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The_Obama-Romney_Ticket
Sep. 18, 2012 at 8:56pmIt’s NOT one OR the other. Diversify is a key to survival …
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niterider
Sep. 18, 2012 at 11:10pm“ticket”, you missed my point entirely. Gold and silver looks pretty but won’t feed you or defend you. In the days ahead I wouldn’t take your precious metals for trade. If you got cash to invest, then I (and I’ll be blunt so you get it this time) suggest getting out of your city, storing food and buy LEAD (lots of ammo). In the next economy nobody is going to care to much for shiny bobbles. It’ll be what you can do, make or grow that will matter. :(
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american warrior
Sep. 19, 2012 at 5:56amamen !!!! I agree. I value my bullets more ! You people will see that you will be using them more than gold…
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The_Obama-Romney_Ticket
Sep. 19, 2012 at 6:16amHmm … slow thread this. Not too many TheBlazers get the whole fiat/gold thing?
Definitely agree — if you’ve got “fiat” paper money (in all recorded history, fiat has ALWAYS failed, that is, became as “worthless as the paper it is printed on”), “convert” it into to the hard assets mentioned.
Keep in mind gold & silver have been a monetary metal since, oh, human history. Since I’m not that old, here’s Wikipedia (not considered authoritative, but at least it’s all in one place):
“Metal as money”
https://en.wikipedia.org/wiki/Metal_as_money
“Gold has been considered valuable since as early as 4000 B.C. when it was used to create decorative objects in what is now Eastern Europe;”
“In 1091 B.C. small squares of gold were legalized in China as a form of money. The first pure-gold coins, however, were minted in 560 B.C. in Lydia under the rule of King Croesus.”
“Coins were first used in ancient Lydia and some of the Greek cities on the coast of Ionia in the late 7th century B.C. They were first struck in a natural alloy (perhaps diluted a little) of gold and silver which we call electrum.”
Read more there … but the point is gold & silver have always been gold & silver and have never “lost” their value. When things settle down, there’ll always be trading of “excess wealth” and a gold coin worth a cow is easier to carry around for trading (at least, for the last 6,000 years).
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Female
Sep. 18, 2012 at 8:06pmPeople, the truth is going to be even worse. Gold is going to be worthless, outlawed, and confiscated again. Legal tender will be only through an RFID system. Bread will be a day’s wage. (Black horseman Rev6:6) Can’t eat gold. Trusting gold is not the answer. *Ezekiel 7 Get yourselves future black market and barter goods like booze, tobacco, anti-biotics, seeds, coffee, etc.
As I ponder the news, I have another question…how do the muslim countries closest to Israel really feel about a nucleur Iran promising to destroy…..wouldn’t they suffer at least fall-out devastation. What would really survive a strike or retialiation in the area? If I was a neighbor to either country, I would be telling Iran to sit down and shut-up!
As a Christian, who believes God promise Israel protection…….the Anti-Christ is about to appear to sign a 7 year peace treaty….get hopefully “Rapture” ready?
The ultimate goal of redistribution: has anybody else ever been creeped out by the implications of all futuristic societies being godless, militaristic, communist?
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thedirtmover
Sep. 18, 2012 at 7:42pmGet it if you can. Silver is not a bad thought either. It’s going up too.
The say California is the golden state. That may be,,,, just you can’t look for it. ( Gold ,,that is…)
Thank your local ECO wacko for that. California could literally dig it’s way out of the financial
hole we are in, if they let the gold mines re open.
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Netsurfer2
Sep. 18, 2012 at 7:25pmThere is even more to worry about than just the economy! We will enter into a third world war very soon and pay for it with hard work again! There is nothing anyone can do about this! As the world population grows the differences continue to build in groups that bring nations on the brink of destruction against one another! The dollar won’t be worth near anything from which it is printed on, but assets will.
Imagine the rubble that people lived through in time of war and you get the picture! It is all just a matter of time and it is coming!
Prepare America! Many whom disagree with our values will try and cause trouble! They flooded our country with them and I’m afraid that we will have to confront such one day! How do you stop them from attacking on our own soil??? Don’t you know that they are here also???
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jacobstroubles
Sep. 18, 2012 at 7:16pmOhhhhhhhhhh…really…by the end of 2014 huh…? ROFL…
We’ll see..about that… ROFL…
Wow..wouldnt it be something if it hit say around $2000/ounce in say the next week or so..then..maybe more in the next 30 days?… wouldnt that be something..
But hey.. who knows…
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MODEL82A1
Sep. 18, 2012 at 7:24pmIf Gold goes over $2,000/oz in the next two weeks (I’ll give you the benefit of the doubt on timing), I’ll buy all you have for $15,000/oz.
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thedirtmover
Sep. 18, 2012 at 7:34pmDon’t be so quick to make jokes. It’s already getting close to 2.000 bucks again.
Silver, today, is as high as I have seen it in a very long time, and still going.
The more money they print, the more the dollar goes down.
An ounce of gold will still buy today,what it did 150 years ago. OR 100 years ago.
Gold is WAY under valued.
I happen to dig for the stuff myself.
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MODEL82A1
Sep. 18, 2012 at 7:51pmDIRT, my offer is every bit as real as JACOBS prediction. I’ll extend it to you, too.
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MODEL82A1
Sep. 18, 2012 at 7:59pmOh, and DIRT, just so you know, corn farmers ALWAYS think corn is “WAY undervalued”, same with all farmers, ranchers and manufacturers of all kinds. Join the club. Or just shut up and dig.
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MODEL82A1
Sep. 18, 2012 at 7:02pmSince the dawn of time ALL empires (i.e. “Superpowers’) have ended poorly, Fiat Currency or not. Cultural rot has destroyed most of them and it is on that path that we tread. (But, hey, if you want to try to make a quick buck on Gold while you wait, go for it.)
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BLACKDIAMONDSKIER
Sep. 18, 2012 at 7:02pmSPREAD THIS INFO TO YOUR FRIENDS !!!
Are We Better Off Now Than We Were 4 Years Ago?
1.) Unemployed Americans since President Obama took office……Up by almost half a million people
2.) Unemployment rate is up by 3.8% since President Obama took office
3.) Long term unemployment is up by 87% since Obama took office
4.) Middle class income is down by $3,960.00
5.) Gas prices up 107%
6.) Home values down by 11% since Obama took office
7.) Worker health insurance costs up 23% since Obama took office
8.) Sending your kids to college since Obama was inaugurated….up 25%
9.) Americans living in poverty increased by 6.4 million since Obama took office
10.) Food stamp recipients increased by 46% since President Obama took office
11.) Consumer price index (inflation) is up 9.1% since Obama took office
12.) Federal debt is up 51% since Obama took office
13.) The United States ranked #1 in Global Competitiveness the day Obama walked into office. Since his inauguration….we have declined to #7
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muffythetuffy
Sep. 18, 2012 at 7:13pmIt no longer matters. Obama and Congress are bleeding away all the wealth and assets of the American people. There is no way to pay for all the benefits that were promised so they will not be paid. When all you Americans are poor and dependent on Government for your Daily Bread you will be able to do anything. If you rebel the food stops. If you still rebel UN Peace Keeper Troops will be sent. Its see what you do now.
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Female
Sep. 18, 2012 at 7:19pmCan we get that on a T-shirt and wear it continuously until the election?
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U.N.hater
Sep. 18, 2012 at 6:54pmWhy in the he!! our we just letting this happen? If you think we are not your crazy. This country has become NUMB!
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muffythetuffy
Sep. 18, 2012 at 7:01pmTHAT IS THE PLAN
When Gold reaches $2,500/oz Obama will order it turned in for maybe $100 an oz. You see, the estimated value of all the Gold being held by people and banks at $2,500/oz is approximately equal to all the money we owe China. All the Gold will be used to pay off what we owe to China and there is nothing you can about it or stop it. Obama has the blessings of Congress and he knows who bought Gold. Try to leave the country and you will find out what those hollow point bullets are for. You white people who voted for Obama and the Democrat Marxists have yours coming very soon or should I say “going.”
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muffythetuffy
Sep. 18, 2012 at 7:07pmNUMB?
You have not seen anything yet. Wait until the Obama Rogue Military forces backed up by the Black Panther Domestic Military Force begin take back from your community. He said he is going to do it you you just do not want to listen. Oh well!
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KangarooJack
Sep. 18, 2012 at 7:13pmDamn Hamilton!!!!
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progressiveslayer
Sep. 18, 2012 at 7:22pmMuffy We’re 212 trillion in the hole and there isn’t enough silver and gold in the world to deal with that debt so the Marxist POS fraud heathen in chief won’t bother confiscating it,there’s no point.
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MODEL82A1
Sep. 18, 2012 at 7:35pmPROG, Let’s see the breakdown on your $212 Trillion number. The biggest I’ve seen is $128 Trillion. Not that the number matters, but I am curious about your data sources and level of Conspiracy Theory-ism. In other words, if you’re willing to exaggerate the numbers on an already impossibly huge number, then the rest of your opinions should also be treated with total skepticism.
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progressiveslayer
Sep. 18, 2012 at 8:04pmMODEL The number is based on total unfunded liabilities for the federal government,I watched an interview two months ago and didn’t write down the mans name but I couldn’t forget that figure because it was so high.I’ve searched the net and can’t confirm the number,I’m not dodging the question I simply can’t find the interview,I’ve searched using ’212 trillion in debt’ but no hits.
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MODEL82A1
Sep. 18, 2012 at 8:14pmPROG, so why not settle on an actually researchable number? $120+Trillion not enough for you? My point is that you care less about facts than you do about agenda. It’s sad, because you’re SO close to being on the correct path. Conservatives don’t need to lie, misrepresent or exaggerate.
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progressiveslayer
Sep. 18, 2012 at 6:46pmOperation twist is appropriately named,the fed plunges the knife and then twists it to make sure of the kill.Keep printing fools and that dollar won’t be worth the paper it’s printed on.
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muffythetuffy
Sep. 18, 2012 at 7:04pmObama’s allegiance is not to America but to everyone and everything that is not American. You people are going to learn what hate is all about from Obama. You elected a President who hates America.
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MCDAVE
Sep. 19, 2012 at 12:27am6 months is what the experts are saying…Qe3 is nothing but another huge rip off by the banksters…Most people can’t see it coming..
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progressiveslayer
Sep. 18, 2012 at 6:43pm2,400 is peanuts wait until the central banks all over the world cause the global depression,silver will skyrocket as well.
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Tobytheone
Sep. 18, 2012 at 7:02pmIt already is
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MODEL82A1
Sep. 18, 2012 at 7:08pmAnd when your Big Collapse comes, unless you are already a millionaire fully invested in gold and silver, you’re just as screwed as the rest of us. Heck, Glenn Beck could wind up Emperor.
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progressiveslayer
Sep. 18, 2012 at 7:17pmModel It isn’t my collapse as you put it I had nothing to to with it,I’ll simply have silver and gold that has value when the fiat currency collapses.All currencies throughout time have collapsed why should the dollar be any different?
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muffythetuffy
Sep. 18, 2012 at 7:25pmMy God, you still don’t get it. This has been in the planning stage since Clinton was President. Bush just surprised them and slowed things down. Some great Communist said, ” When you have them by their balls, their minds and lives come willingly.
I do read how people ask why is this happening? Also I read people saying why doesn’t anyone do something. No one says I am going to stop this insanity. Everyone knows that none of you will risk your big screen TV, car, home, or welfare for anything. Obama, Hillary and Soros knows all of this even if you don’t. Well so be it, no nation lasts forever. Everyone things they way of life will last a 1,000 years.
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MODEL82A1
Sep. 18, 2012 at 7:27pmPROG, and MY point is that if things go as haywire as you imply, your meager preparations will not help you in the least. You’re not just going to “ride it out” with some weapons, metals and jarred food. If the “world economy” indeed crumbles, the guys with the guns will survive. And I don’t mean you and me.
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Stelex
Sep. 18, 2012 at 8:41pmGuys, Girls, the ship has hit the berg. Its a fact that we’ve been sold out, R and D don’t matter anymore, and no I’m not a Paulbot. He couldn’t fix this either. Society will collapse, I had hope until they started QE3. Thats the nail. Our hole is so deep you can’t see light from the bottem, and they just employed a brand new back how to keep digging. If Romney said he’d repeal the Patriot act and honestly reform taxes. I may have some hope. But that ain’t happening, they all loves there power. Its a simple equation ……Freedom =Small Fed Gov/State Gov * the People.
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thekuligs
Sep. 18, 2012 at 6:40pmWow that crazy Glen Beck, telling people to buy gold way back when it was $800 an oz =/ glad we are all so gullible.
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MODEL82A1
Sep. 18, 2012 at 7:15pmIf Glenn was REALLY smart, he’d be telling listeners to invest in Barrett Rifles, if they’d have him as a spokesman. If you think Gold will be valuable………….
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muffythetuffy
Sep. 18, 2012 at 7:27pmThe Government will seize it. It just takes a Executive Order and a few thousand IRS agents armed with guns loaded with hollow point ammo.
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Stelex
Sep. 18, 2012 at 8:08pmGold is useless, if this goes as planned, toilet paper will be worth more. Seriously, I ain’t using leaves. When you are ready to eat a cricket, how much is gold worth. Time is short, stock up on food, short term and long term, lead……will be much more valuable then gold. And friends ……you’ll need them. Water filtration is a must also. WTSHTF……..is near. We won’t make it to the Singularity. Maybe.
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