Gold, down 17 percent since January, is poised to lose 20 percent in a year as inflation fails to accelerate and with the worst risks to the global economy waning, Credit Suisse Group AG said.
Gold will trade at $1,100 an ounce in a year and below $1,000 in five years, according to Ric Deverell, head of commodities research at the bank. Lower prices are unlikely to lure more central-bank buying, said Deverell, who worked at the Reserve Bank of Australia for 10 years before joining Credit Suisse in 2010.
“Gold is going to get crushed,” Deverell told reporters in London today. “The need to buy gold for wealth preservation fell down and the probability of inflation on a one- to three-year horizon is significantly diminished.”
Investors are losing faith in the world’s traditional store of value even as central banks continue to print money on an unprecedented scale. Bullion slumped into the bear market last month after a 12-year bull market that saw prices rise as much as sevenfold. Gold is a “wounded bull,” Credit Suisse said in a Jan. 3 report.
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Thanks to Mr Lim for sharing this.
3 comments to Gold - Crushed
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Unknown Dear UP41
Just posted specially for you:
http://masterwordsmith-unplugged.blogspot.com/2013/05/naked-short.html
That link also has links to four other very interesting articles.
We are living in interesting times.
As a humble retiree, I humour myself by reading all these developments and live in peace for I don't have the sort of $$$ to dabble in gold or what-not's. Health is better than wealth at this point of my life.
Having said that, I believe many economic theories may not apply in current conditions for reasons better left unsaid....
Take care and God bless!
Stay in touch.
Kind regards
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UP41 Dear MWS Thanks for the post. We may not have the gold nor $$ but these ppl are playing with fire. Real hell broke loose if the $$$ collapse and Malaysia is more connected to the US than we wish .... And we be the kancil in the centre of the elephants fight
UP41 It is sure interesting sign. Speculator are selling paper gold ( i.e futures and what not papers as shown by the COMEX) but the real physical gold are being purchased by the Indian and Chinese in tons . Normally when there is market crash, there are few buyers and more sellers but in actual physical gold trading ( as against the hedge fund papers ) , there are more buyers than seller. It really beat the hell out of my understanding of economic theory