Bank Of America: Gold to hit $7000/oz

I heard a similar rumor last summer and it was supposed to go down before the new year. Gold at 5k and silver at $120 an oz. I just ran across this story. Not sure as to the credibility and I havent had time to research it. Hoping someone on here can add some relevant info.
Commodity Online

As currencies around the world continue to be debased at astronomical rates especially the dollar and the Euro gold will continue its up trend. When we have the final crash gold and silver will be the money.

if gold hits $7000 an ounce, then effectively, it will be priced out of the average citizens reach.

gold has always been within reach, and provides comfort.

think about that, historically mankinds only monetary backup to hard financial times will be near impossible to possess.

you'll be at the mercy of the federal reserve note, i.e. system.

i can only imagine the economic armageddon that is about to hit, and no life preserver to hang onto like, gold.

If the US dollar does collapse, $7000 an ounce might be a bit on the low side.

I wonder what brass & lead will hit...

Double entendre.. high five!

You know what that implies to me? Gold is very,very rare. The scary part about that is that our economy is based upon gold. If gold is that rare, that means that there is essentially nothing at all backing the United States currency. Nothing.

Originally posted by SpeakerofTruth
You know what that implies to me? Gold is very,very rare. The scary part about that is that our economy is based upon gold. If gold is that rare, that means that there is essentially nothing at all backing the United States currency. Nothing.

Our economy hasn't been based on a damn thing since 1971.

My husband day-trades stocks, and he has been in a gold mine ETF and also with a gold mining company (JAG). He has been holding these positions for a while. He stated that the prices have been squashed abnormally low for a while now, and when that happens it is usually due to manipulation so that Big Money and their buddies can pick up this stuff cheap before it shoots the moon.

Now that Big Money has their mitts on these stocks at dirt-cheap prices, they can let the news out so all the retail investors jump on the bandwagon and drive the prices up. In fact, news like this is let out purposefully by entities such as B of A in order to guarantee the price jump.

As far as the actual physical gold, I see it shooting out of the range of most people. I still believe silver is the poor folks' choice, still affordable, and the price is still being kept down thanks to crooks like JP Morgan Chase.

I heard that ammo components are about to go up as much as 25% in the next 60 days due to raw materials costs.

Would be the time now to pick up any you might burn at the range and make 25%.

reply to post by AwakeinNM


I can believe that.... We're basically a "credit based" economy. Nothing supports it.

Originally posted by SpeakerofTruth
reply to post by AwakeinNM

 

I can believe that.... We're basically a "credit based" economy. Nothing supports it.

edit on 26-4-2012 by SpeakerofTruth because: (no reason given)

Here's a Source

I still think that it's a good thing to have a supply of silver available just in case TSHTF

I wouldn't put all my money into it but I'd get some and stick it in a safe place.

If the dollar collapses, it won't happen overnight. You'll see prices on things getting higher and higher. Initially you'll see inflation at 10-30% annually.

As the dollar loses it's value, you need to stock up on other material items that you could use to trade and/or barter when the dollar is worthless. Things that will have value will be food, tools, guns, ammo, alcohol, seeds (especially heirloom varieties), sturdy warm cloths etc. We could see a depression just like the great depression.

I hope that this doesn't happen but if you see the dollar losing it's value on a weekly basis then you better get prepared.

reply to post by GoldenRuled


Difficult to know for sure, but gold at $7K USD might be the aftermath of a cataclysmic economic collapse and indicate massive devaluation of all fiat currencies worldwide resulting in accordingly high prices for commodities. Another possible route to $7K gold might be remonitization of gold by a majority of major governments worldwide. This would eliminate, for the most part, the currently used fractional banking system in favor of a gold standard. The caveat in this case being that governments could simply fix the price of gold at whatever level they deem appropriate....and that price won't be $7000. In any event, it's never a bad idea to hold some physical gold whether its in the form of jewelry, bullion or legal tender. Some favor jewelry believing that government confiscation is a possibility. Lots to consider on this topic....good luck sorting through it all.

Sounds a bit 'off'

"When the US went off the gold standard, prices went up from $35/oz to $800/oz." Over what period of time? 40 years? The AVERAGE price in 1967 was 34.95. It spiked briefly above 800 around 1980 but did not hold above 800 until 2008. And his "Equating the same performance in the current gold market, gold prices will have to rise to $5000/oz from its base of $250/oz." actually happening is IMO highly optimistic misleading cherry picking. In what year was the base 250?

Methinks someone has a lot of gold they want to unload asap.

Something to consider: gold is only worth what people are willing to pay. Would there be any buyers at $7K? Difficult to know as it would depend on prices of everything else. When loaves of bread are $15, $7K/ounce gold certainly seems possible but, all in all, the B of A guy quoted in the article sounds much like many of the other perma-bulls out there.

reply to post by randomname


I'm still waiting to see governments start to confiscate all the gold... That will be fun, if you can not transact gold it will lose all value, the only hope will be keeping it as a hidden reserve (that will be criminal) and hope that the situation reverses, but people will be left with a yellow material that they can't do S*** with...

gold, like fiat currency's are only worth what we say they're worth so sure they will go up when the paper falls but only briefly, then it will be worth little when people realize they can't eat it, heat their homes with it, nor power anything with it. it's not a tangible asset so it will fall also in the chaos.

Gold prices will level off at some point for one simple reason. There a lot of gold out there it is just that it cost more than it is worth to get. There is 38 pounds of gold in a cubic mile of sea water.
The United States Geologic Survey (USGS) estimates there to be 326,000,000 cubic miles of water on the planet. Now take 326,000,000 times 38 and you get 12388000000 pounds of gold in the worlds oceans. The catch is it cost more to get it out than it is worth. But at some point that will not be the case and it will be able to be done at a profit. If gold prices get to this point then the market will be flooded with gold and the market will crash and after that then soda cans maybe made out of gold as the price goes though the floor.

On a side note did you know that at one time aluminum was worth more than gold?

History of aluminum

Most gold that is mined is sold through a hedge. This means it is sold to speculators on what gold futures would be. This allows the gold mines to act in ways to create bubbles in gold prices. Problem is they are going to lose one of there biggest players soon. Ron Paul who is invested about 70 percent of his wealth is in gold mines. He is a cheerleader and retiring. When the insiders see there man Ron Paul out of office. There will be a small drop as you see the other insiders pull out of gold mine investments. A couple months after that small drop you see which will be blamed on small correction of the market you will see the gold price crash. And yes the goldmines that Ron Paul owns are operated as hedge funds and speculator markets and derivitives all the things he says he hates so much he is. So watch for a dip in December followed by a crash of gold in January or Feburary. And Ron Paul will be happy he got his and is protected by his hedge on gold. Nice retirement. Call it the seniority system. Look at Nacy Pelosi with her 5 million dollars of Apple Computer Inc stock in her husbands name. After that Bush Pelosi meeting in 2006. Apple droped computers out of its name and started Ipods Ipads and so on. The stock went from 100 dollars a share to 610 dollars a share today. Plus all the other perks Steve Jobs got from that meeting between Bush and Pelosi to make Pelosi rich. Call that the seniority system with a touch of blackmail over illegal torture.

Gold doesn't really change in value, it holds its value. It's the monopoly money that loses value, causing the gold to be worth more in dollars. If gold is worth 7000 an ounce, then a gallon of gas will be thirty bucks, and a loaf of bread will be ten.