JP Morgan: Gold to hit $2500 by end of year.
August 8, 2011 Leave a comment
Taken from TD Waterhouse:
JP Morgan says gold may jump to $2,500/oz by yr-end39 minutes ago by Thomson Reuters
BANGALORE, Aug 8 (Reuters) – JP Morgan said it now expects spot gold prices to climb to as much as $2,500 an ounce by year-end on very high volatility, following the downgrade of the U.S. debt.
“Before the downgrade, our view was that cash gold could average $1,800 per oz by year end. This view will likely now prove to be too conservative,” analysts Colin Fenton and Jonah Waxman said in a note to clients.
The analysts recommended investors own commodities geared toward Asia, investment and inflation, and underweight those anchored to the United States or consumption. (Reporting by Antonita Madonna Devotta)
This is just after yesterday’s revised target from Goldman – $1830 from $1735. JPM’s is is much more bullish. Other predictions will be no doubt be adjusted upwards as well. But here at CMR we have always been predicting a huge gold price — even at $1700/oz.
The question should not be, “How high can gold rise?” Instead, it should be, “How low can paper currencies fall?”