Gold price is going to break the USD$1600 mark!

Gold price at all time high of USD$1599 now. Silver price has gone above USD$40.

I am long SLV and UGL call options.

Uncertainty regarding the outlook for European and U.S. debt has most participants in Kitco News’ Gold Survey expecting higher prices for the yellow metal this week.
In the Kitco News Gold Survey, out of 34 participants, 22 responded this week. Of those 22 participants, 15 see prices up, while three see prices down and four see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.
Many said with the market making record highs this week, to near $1,600 an ounce, gold could build on the upward momentum, especially as sovereign debt risk for southern-tier European nations is at the forefront of the news cycle. Ongoing negotiations to lift the U.S. debt ceiling ahead of the Aug. 2 deadline also add to the safe-haven allure of gold.

Gold price at all time high!

Gold is at USD$1594 per oz now. I remember when I first bought it 5 years plus ago, it was about USD$400/oz..QE3 (Quantitative Easing 3 or Money printing round 3) is coming. This will lead to higher gold/silver price, higher commodities price, higher oil price, higher agriculture produce price, which leads to higher inflation, which leads to unhappy citizens which leads to riots which leads to.....

 

Gold Price Poise to Go Up

Gold is currently at USD$1371. It is poise to go up again due to the many debt problem in Europe and USA. The PIGS economies in Europe is having serious debt problem and the US is looking to increase its debt limit again to above USD$14.3 trillion. Its current debt stands at USD$13.95 trillion! As long as the debt problem exist and the money printing don't stop, gold will continue to go higher. Take this opportunity to buy more!

How High Will Gold Go in 2011?

By Jeff Clark, BIG GOLD


After stellar years for both gold and silver, what prices will precious metals hit in 2011? Here's an analysis based strictly on their price behavior in the current bull market.


First, take a look at the annual percentage gains that gold has registered since 2001 (based on London PM Fix closings):



Excluding 2001, the average gain is 20.4%. Tossing out the additional weak years of '04 and '08, the average advance is 24.8%.


So we can make some projections based on what it's done over the past 10 years. From the 12-31-10 closing price of $1,421.60, if gold matched…


* The average rise this decade, the price would hit $1,711.60

* The average rise excluding the three weak years = $1,774.15

* Last year's gain = $1,858.03

* The largest advance to date (2007) = $1,875.09


But what if global economic circumstances continue to deteriorate? What if worldwide price inflation kicks in? And what if government efforts at currency debasement get more abusive? If Doug Casey is right, a mania in all things gold lies ahead – what if that begins in 2011? Here's what price levels could be reached based on the following percentage gains.


* 35% = $1,919.16

* 40% = $1,990.24

* 45% = $2,061.32

* 50% = $2,132.40

* 1979's gain of 125.7% = $3,208.55


It thus seems reasonable to expect gold to surpass $1,800 this year, as well as reach a potentially higher level since the factors pushing on the price could become more pronounced.


Here's a look at silver.



As you can see, silver had its biggest advance in 2010. The average of the decade, again excluding 2001, was 27.5%. And also tossing out the '08 decline, the average gain is 34.3%. So, from the 12-31-10 closing price of $30.91, if silver matched...


* The average rise this decade, the price would hit $39.41

* The average gain excluding 2008 = $41.51

* Last year's advance = $56.22

* The 1979 gain of 267.5% = $113.59


So, $50 silver seems perfectly attainable this year. And that's without monetary conditions worsening.


It's titillating to ponder these advances for gold and silver, especially when you consider we might be getting close to the mania. And if we are, that should do wonderful things to our gold and silver stocks, too.


I would add one caution: the odds are high that there will be a significant correction before gold begins its march to these price levels. In every year but two ('02 and '06), gold fell below its prior-year close before heading higher. And here's something to watch for: in every year but one ('08), those lows occurred by May.


In other words, a buying opportunity may be dead ahead. And if you buy on the next correction, your gains on the year could be higher than the annual advance.

Gold Price Update

In my last post at 7 March 2010, gold was at USD$1134, an all time high at that time. Since then it has move to above USD$1400. It has drop a bit to USD$1372 now. I notice a lot of people has started to say that it will crash now. But does the US government resolve its debt problem of 14 trillion dollars? The answer is NO. In fact it is planning to raise more debt to cover the existing debt by asking the Congress to lift the debt limit of 14.3 trillion to an even higher amount. Gold will continue to rise as long as the US and Euro keep printing money. Buy it now to protect your wealth. This is my sincere advice.