Tuesday, November 2, 2010

Gold to $US10,000/oz ?


Interesting and typical anti-gold article from the Wall St Journal making fun of someone who dares to say that Gold will go to $US10,000/oz.

I love the lines:
"Mr. McGuire is a lone voice among mainstream investors suggesting such an outsize price jump in gold's price."
- gee Mike Maloney predicted $10k years ago and more recently $15k/oz. Although if you take any fiat currency price for gold to the end state you come to the point where gold = infinity, ie as the currency approaches Zero value Gold must approach Infinity, as it did recently in Zim$.

"Most pension funds consider gold too volatile and therefore too risky"
- yeah that idea has worked out so well over the last 10yrs+ hasn't it with the SP500 and DJIA going nowhere and gold up 440% in $US.

There are gold bulls. And then there is Shayne McGuire.

The 44-year-old pension-fund manager from Texas, who spoke recently at a gold conference in Berlin, caused a stir among the roomful of gold aficionados. His provocation: A book that predicts the price of the precious metal could soar to $10,000 an ounce, more than seven times its current price.

Like those who once boldly predicted $1,000 Internet stocks and a 36000 Dow Jones Industrial Average, Mr. McGuire is a lone voice among mainstream investors suggesting such an outsize price jump in gold's price.

Mr. McGuire's view isn't idle prognostication. He runs a $330 million gold portfolio at the Teacher Retirement System of Texas. Mr. McGuire's forecast, which he made in the recently released book, "Hard Money," makes him a very far outlier. Most on Wall Street consider the prediction outlandish.......read on

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