Have Gold Prices Peaked?


Source: Bianco Research

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Great pair of charts from Jim Bianco looking at what is the $8.4 trillion dollar question. ($8,405,260,409,705 to be precise).

I have no idea where and when Gold tops — I have no way to value Gold other than the last price paid — but its certainly a fascinating debate.

CNBC.com:

Gold Prices Already Peaked in 2011: Report:  Gold prices should remain high this year but are unlikely to rise above the record levels reached in 2011, according to CPM Group. That is the key takeaway from CPM Group’s latest forecast—“Gold Yearbook 2012,” its annual analysis into the supply and demand factors driving the global gold market. CPM Group is an independent commodities research and investment banking company, and its annual forecast is widely followed by the gold market. Increasing supply versus a bigger global pool of investors for gold are combining to put a floor under the market, and prices are expected to remain firm, without the parabolic rallies of the recent past. “We are looking for the price to stay above $1,500 [an ounce] this year and above $1,400 over the next few years,” says Jeff Christian, Founder and Managing Director of the CPM Group.

MarketWatch:

The Next Leg Of Gold’s Bull Run: Has the great bull run in gold run its course? On the surface it looks as if it might have. After running up close to $2,000 an ounce during the market panic of last autumn, it has slipped below $1,700. And it shows little sign of reclaiming its highs. But here’s one reason why it could have a lot further to go. The big, developed world central banks will start buying again. And if they do, it would put real rocket fuel into the price of the precious metal. In his budget last week, British Chancellor George Osborne caused a small flurry in the markets with a line that suggested the Bank of England might start stockpiling gold. The U.K. Treasury quickly denied it, saying that he had just been talking about reserves in general, rather than gold specifically.

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