Larry Edelson of the Uncommon Wisdom Daily blog shares his thoughts on gold, the US dollar, other commodities, and cyclical trends.
I am now a buyer in gold getting ready for the next leg up in the precious metals, which should see first $1100, then $1250/$1300, and then $1500. Once gold broke above its previous 2008 high of $1035 and especially above the $1050 level, that confirmed on my systems that gold’s next big leg up is now underway.
That doesn’t mean there won’t be pullbacks. There will be pullbacks. But we now have high probability confirmation that gold is beginning its next leg up and will reach much higher prices.
Larry Edelson goes on to discuss some price targets, with some estimates at $2500, going as high as $5000. He also discusses the real cause for what is driving gold. Many attribute this to inflation, but inflation is just an effect. The real rise in gold can be attributed to a the public’s loss in confidence in the government’s ability to manage the economy and mitigate the economic crisis.