Gold to 2000?

http://www.usatoday.com/money/markets/s ... 50097118/1

"In a sign of how popular precious metals are — and how unpopular stocks are — SPDR Gold Trust is now the largest exchange traded fund, surpassing the SPDR S&P 500 ETF

Gold has been in a multiyear bull market: An ounce of gold shot to a record $1,888.70 an ounce Monday, up $39.80 from Friday. The past 10 years, gold has soared 591%, vs. a 3.3% loss for the Standard & Poor's 500-stock index."

So all this money flowing into gold, parked in a vault, with no practical use except to make jewelry. More money than in stocks (SP500 ETF). Capital in stocks or bonds or money markets is used to grow business and the economy. Gold just gets mined out of the ground and sits in a vault. Seems like a waste of resources and energy to me. I wouldn't mind having some though!

I remember a few years back when Glenn Beck was telling everyone to buy gold when it was around $600 an oz..... then about a year ago the Wiener went after him and Goldline saying he was using scare tactics. I'm sure the people that were actually scared into buying gold are laughing right now.

I was reading an article yesterday about possible higher margin requirements coming for gold futures, they are only about 4% now I think, that is a lot of leverage. Silver dropped sharply a few months ago when they raised futures margins. So maybe a short term top in gold coming shortly?

With QE3 on the horizon, $2000 gold does look likely.

Traditionally politicians love to spend big bucks on capital projects before big elections and LJ posted an article about the new highway bill which passed overwhelmingly and handed out pork like Hog Heaven. Even more debt yippee. The TEA party lost this round.

Gold has many industrial uses, it's not used just to make jewelry.

I remember people saying a couple years ago that gold would hit $2500 an ounce - I thought that was quite a stretch, but it doesn't look that way now. Very possible. I wish I had bought more back when it was $313 an ounce.

+1 about industrial uses. We use it in our circuit boards and have it applied on some of our electrical contacts for increased reliability.

Once gold hits $2500, I am going to start scrapping the gold off our bad circuitboards. :woo hoo:

Gold is tanking today, short term top is definitely in. SELL SELL! Too late, sorry.