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Goldman: Gold is Going to $1200 (-30%)

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CrowEpistemologist
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Rockefeller, Carnegie and others would have also admonished you for that.

(shrug...) So?

I enjoy the freedom of choosing to do what works best for me. And I can't say that what I do would work for anyone else because it won't work without observing specific moral protocols. But that's for each individual to freely choose how they work things out for themselves.

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(shrug...) So?

I enjoy the freedom of choosing to do what works best for me. And I can't say that what I do would work for anyone else because it won't work without observing specific moral protocols. But that's for each individual to freely choose how they work things out for themselves.

Simply, they employed a similar approach to acquiring control over the factors they could, in essence, own outright the complete production pipeline from the natural resource to the finished product. This only tends to work today on a smaller scales. In the media sense, news gathering with intent to dissemination via newspaper, radio and television in a given geographic area is heavily regulated. Microsoft was chastised for trying to integrate "too much content" into their product (the raw material of programming into a more robust finished product.) .In a way it reminds me of Rearden having to sell off his copper mine and other interests because it made him not only too efficient, but I would have to add, too independent as well.
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Right now, yes.

And also, silver is consumed as an industrial metal much more than is gold.

Careful there, Moralist, you are starting to sound like a rational investor making statements like that. Keep on that same train of thought and you'll end up exactly like me, and exactly like the millionaires at Goldman.

Just buy more gold. It always goes up in value and it magically tracks human intentions. If they find a mountain full of it somewhere and it becomes as common as copper, that will just mean that everything in the world has magically gotten cheaper to buy. That's how it works. Really.

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Meh, you can't go by that. Governments across the world are using gold as a means to store wealth. That likely makes gold more valuable than it used to be, compared to silver.

But, of course, silver is just as good an option as gold, depending on the logistics of buying and storing it. So are other things, but, out of almost all of them, gold is the most convenient to store and trade.

After having been raptured by Crow's salient advice, I circled back and see that I missed this earlier.

I notice gold and Ayn Rand share something in common. Their critics love to bash them, and anyone who breaths a word about either is granted cult access in proportion to how much they have familiarized themselves with the respective materials.

Gold is held by governments, investment firms, jewelry stores and embedded in rock within the earth. Silver too, and with the exception of India, to a lesser extent. Value, on the other hand is another multi-faceted piece of the puzzle. The ratio is just one way to view a relationship between the two.

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Simply, they employed a similar approach to acquiring control over the factors they could, in essence, own outright the complete production pipeline from the natural resource to the finished product. This only tends to work today on a smaller scales. In the media sense, news gathering with intent to dissemination via newspaper, radio and television in a given geographic area is heavily regulated. Microsoft was chastised for trying to integrate "too much content" into their product (the raw material of programming into a more robust finished product.) .In a way it reminds me of Rearden having to sell off his copper mine and other interests because it made him not only too efficient, but I would have to add, too independent as well.

You're right. Production pipeline control works like a charm on a micro scale where you can enjoy the most independence and freedom to act autonomously. Anything larger just paints a big red bullseye on your back. Besides regular business, I'm also working in my spare time on a product design and development micro project as a hobby. It's like playing a fun game where you keep score with money. I love Capitalism.

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  • 2 weeks later...

People harboring irrational terror and prejudice over things they don't understand... on an Objectivist forum... How truly, truly depressing...

So yeah... buy gold you guys! Buy as much as you can! Those people at Goldman are wrong! They just make mountains and mountains money because they are, um... idiots who don't understand financial markets!

Mortgage your home! Sell that Camaro you have on the front lawn on blocks! Use the money to buy gold. Buy buy buy! Just like every commercial on Fox News says you should. Don't question their premises--you are the financial expert, not the so-called "financial experts" who live in those fancy houses and drive those fancy jet airplanes.

The End is Near. Armageddon is upon us! Jesus will return and you will all suffer the rapture, and as we know Jesus will only accept metal-based commodities as payment, As It Is Written. Prepare for a time when there is no stock market, no financial system, and no banks, and no (gasp!) fractional reserve banking system! Prepare for the time--imminent!--when we digress progress to an "enlightened state" were we have the the financial system of the 19th 14th 3rd Century! We'll start bartering blankets in exchange for corn meal. Forget about the global financial system necessary to build a the device you make these Internet postings on--it's all a fraud! It doesn't actually exist!

***

Okay I feel better now. Well a little better. I'm still depressed...

Nothing you wrote gives me any reason to change my belief that the US Federal Reserve's monetary policy will result in a continued long-term rise in gold prices.

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Nothing you wrote gives me any reason to change my belief that the US Federal Reserve's monetary policy will result in a continued long-term rise in gold prices.

Nor mine either...

Actions always have consequences. It's a popular fantasy that the actions of the government can somehow magically defy causality.

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Nor mine either...

Actions always have consequences. It's a popular fantasy that the actions of the government can somehow magically defy causality.

Our government can, however, open bank accounts which are based on promises, I.O.U.- s and thin air.

ruveyn1

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  • 1 month later...

http://en.wikipedia.org/wiki/Tulip_mania

 

Honestly, what value does gold hold? Aside from its modern use in microchips the only reason people have historically assigned much value to the stuff was because it was rare, shiny, and malleable.

 

 



Our government can, however, open bank accounts which are based on promises, I.O.U.- s and thin air.

ruveyn1

As long as people have faith that they are getting paid back those IOUs are worth something.
Edited by Weissaul
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  • 7 months later...

Today, gold is hovering around ~1250. Just like GS said it would. While it was just a prediction, there were lots of indicators to support their thesis. They used reason to predict the price of gold, and they were right.

 

For others, who use (disconnected) AbstractionsTM to formulate their conclusions about the marketplace, this one's for you:

 

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Today, gold is hovering around ~1250. Just like GS said it would.

Are you alright? Your inability to focus on even the most essential details of things you talk about is amazing. I've seen toddlers do a better job of retaining information.

 

Goldman Sachs predicted that gold will be between $1800 and $1825 today. It said that it would be $1200 in 2018.

From your own link:

We lower our 3-, 6- and 12-mo gold price forecasts to $1,825/toz, $1,805/toz and $1,800/toz and introduce a $1,750/toz 2014 forecast.

Speaking of 2018, you predicted that in 2018 gold will be at $600. So which is it? Is gold going to be $1200 or $600 in five years?

Edited by Nicky
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Are you alright? Your inability to focus on even the most essential details of things you talk about is amazing. I've seen toddlers do a better job of retaining information.

 

Goldman Sachs predicted that gold will be between $1800 and $1825 today. It said that it would be $1200 in 2018.

From your own link:

Speaking of 2018, you predicted that in 2018 gold will be at $600. So which is it? Is gold going to be $1200 or $600 in five years?

 

They predicted it would plummet in value and pulled the plug on the bubble, signaling non-dumdum non-feelings-oriented investors to sell. Then it went down faster than expected.

 

That they got the time frame off is not essential to an investor whose been told that the bubble is now popped. Every single investor taking their essential advice at that time would be thanking them right now.

 

$600 could absolutely be the price of gold in 5 years, yes, and I think there's a very good chance of that. I base this on rationale which is collected by observing reality--a process people like you reject. I might be wrong of course, since gold is just another investment instrument which can go up or down based on demand--another thing people like you reject.

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They predicted it would plummet in value and pulled the plug on the bubble

No, I'm pretty sure that they predicted this:

We lower our 3-, 6- and 12-mo gold price forecasts to $1,825/toz, $1,805/toz and $1,800/toz and introduce a $1,750/toz 2014 forecast.

 

If you need me, I can post that again tomorrow.

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No, I'm pretty sure that they predicted this:

 

If you need me, I can post that again tomorrow.

 

And they predicted it would go to 1200 after that. They got the timeframe wrong. So what. The direction is all any real investor would care about, but as we know, you aren't a real investor, you are somebody you knows that the government has inflated the money supply, and someday the Rapture will come and your yellow metal bars are going to finally get you the respect you deserve.

 

So with any luck, you did as I asked and sold your copious assets and bought nothing but gold 6 months ago. All of the boys at Goldman are splitting up the billions they made selling gold derivatives (thanks to people like you), but your ship to come in, don't worry. Alan Greenspan wrote an article in the 60s and you believe it's still true to today (even if the author no longer does) and you aren't going to let any new facts in. Cool. Invest all you've got.

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  • 4 months later...

au12202013.gif
It would appear that Goldman hit the nail on the head this time.

According to a January 13th, 2014 article by CNBC,

"Currie, Goldman's head of commodities research, told CNBC on Monday he had an end-of-year price target of $1,050 per ounce for gold, a 16 percent drop based from current prices of $1,251. The main culprit? Economic recovery."
 

The good news is, if this prediction comes to be, it will bring more pressure to bear on inefficient mining operations, potentially transferring misallocated resources into more efficient usage hands. The current costs of production range from a reported $628/troy oz., to $1264. This could potentially keep the price lower permitting more individuals access to a market and/or asset that might otherwise be denied to them.

 

Edited: prior/current

Edited by dream_weaver
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