Gold UP...!

http://www.kitco.com/charts/livegold.html

Citigroup Predicts $2000 An Ounce

http://seekingalpha.com/article/108609-citigroup-sees-gold-reaching-2000

With significant turmoil in the financial markets around the world, some analysts are thinking gold will skyrocket as investors flee to safety. One such prediction from **Citigroup (NYSE: C) **pegs gold at $2,000 per ounce - roughly 150% higher than today’s $800 per ounce.

As Professional Investment Advisors, it’s our duty to understand the global economic forces at work on our client’s portfolios. In these historic times, this is especially true. Normally we don’t put much stock in analyst opinions, especially Citigroup opinions, but we feel this particular analysis hits the nail on the head. It’s also interesting how this is only reported on a European news site. Not surprising at all, really. Here’s an excerpt from the article:[INDENT]The bank [Citigroup] said the damage caused by the financial excesses of the last quarter century was forcing the world’s authorities to take steps that had never been tried before.

This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold.

“They are throwing the kitchen sink at this,” said Tom Fitzpatrick, the bank’s chief technical strategist.

“The world is not going back to normal after the magnitude of what they have done. When the dust settles this will either work, and the money they have pushed into the system will feed though into an inflation shock.

“Or it will not work because too much damage has already been done, and we will see continued financial deterioration, causing further economic deterioration, with the risk of a feedback loop. We don’t think this is the more likely outcome, but as each week and month passes, there is a growing danger of vicious circle as confidence erodes,” he said.

“This will lead to political instability. We are already seeing countries on the periphery of Europe under severe stress. Some leaders are now at record levels of unpopularity. There is a risk of domestic unrest, starting with strikes because people are feeling disenfranchised.”

“What happens if there is a meltdown in a country like Pakistan, which is a nuclear power. People react when they have their backs to the wall. We’re already seeing doubts emerge about the sovereign debts of developed AAA-rated countries, which is not something you can ignore,” he said.

Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. “If true, this is a very material change,” he said.
[/INDENT]

Is this the next bubble on the horizon?

If the economy shoots up and we have peace in the world, because
everyone respects Obama, then gold could go down.

What do you think?

I think it’s your money to invest as you see fit

Hey John!

These guys are idiots! They’ve taken the largest and one of the most profitable banks in the world and ran it in the ground. Citi is damn near penny stock status. I’m not at all sure they’re a competent source of investment information…

Good Luck…

You are correct. But it looks like this time they may have hit the bulls eye.

Gold keeps climbing.

$927.00

$945.00

As I predicted back in December: http://www.nachi.org/forum/f11/another-gold-wave-coming-get-back-35709/