How To Sell Gold

Will Gold Go To $3,000 Per Ounce?

 |  by Hal Young

May 08, 2012 – With gold closing at $1,580 an ounce, we could see gold hit lows of $1,523 per ounce once again like in December of 2011. The drop could be attributed to JPMorgan’s report of their huge $2 billion loss, and of course the current political turmoil in the europe. China’s weak economic data didn’t help either. And if the JP Morgan loss is actually more than expected we could see even sharper sell offs in the markets which would mean a weaker gold market.

Even though gold is usually seen as a safe haven assest, it is currently showing a short term correlation with risk assets like oil, industrial metals, and other such equities. The most likely scenario is that speculative players are once again selling gold on the COMEX to cover losses suffered in other markets.

It is projected that gold may drop as much as 3% this week which would be the largest drop in over two months. However technical and other fundamental factors indicate that an intermediate low may be closer than predicted.

Gold May Rise to $3,000 an Ounce

According to well known economist and strategist David Rosenberg, “Gold will go to $3,000 per ounce before this cycle is over.” He believes that, “It is time to search for safety as the markets maybe repeating the downturns of 2010 and 2011.” “Right now there is a very good opportunity in gold” as it has been corrected and is “off the radar screen right now”.

When more quantitative easing goes into effect he sees gold rising to $3,000 per ounce or more. One could see that as a rather bearish view, however Rosenberg says that, “it is not about being bullish or bearish,” it is about “stating how you view the world”. He is afraid that the major central banks are just going to “print more money and keep real interest rates negative”. Short term interest rates is one of the main factors that determine the actual gold price and the longer they stay negative the longer gold will be a bull market.

You can watch the full interview with David Rosenberg here.

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