Monday, November 14, 2011

Goldman Sachs says to stay in gold and forecasts much higher prices

Goldman Sachs has come out with a forecast on gold and other commodities that bears witness to much higher prices.  Their assessment of a QE3 coming in 2012 leaves no doubt that low interest rates and higher inflation make the precious metals the only wealth protection available.

For what it's worth, Goldman likes gold. "Consumers: We expect gold prices to continue to climb in 2011 given the current low level of US real interest rates. Further, with our US economics team now forecasting slower US economic growth in 2011 and 2012, we expect US real interest rates to remain lower for longer, supporting higher gold prices through 2012. Consequently, we recommend near-dated consumer hedges in gold through 2012. Producers: With gold prices expected to continue to climb through 2012, we find hedging opportunities less attractive for gold producers at this time." In other news, Goldman also likes Silver, Copper, Zinc, WTI and Brent. In other words: QE3 is coming. - Zerohedge
Seeing as Goldman Sachs is a member institution of the Fed, we kind of think they have an insight into the policies to come for the dollar.

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