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Analyst sees gold "peaking certainly above $3,000, very possibly above $5,000" - Wealth Managers

January 28,2013


Current policies leading to Weimar-like inflation or market crash, says Martin Hutchinson of Prudent Bear

Analyst sees gold

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I don't think 2013 will be the year in which the bubble bursts -- there is as yet insufficient speculative frenzy, although the market temperature is certainly rising.

Moreover, it would be a pity to have such a record-breaking blow-off without a serious speculative bubble in gold similar to that of 1978-80 -- which if the $1500-1900 gold price of the past 15 months is regarded as a base, suggests a gold price peaking certainly above $3,000, very possibly above $5,000. Equally, it would seem impossible for the present bubble to outlast President Obama, and fairly unlikely for it to last into the election year of 2016. The 18-month period between July 2014 and December 2015 would thus be my best guess for the onset of collapse, with a prolonged rolling crisis lasting for the greater part of that period being the most likely outcome. 2016 and 2017 would then be years of grinding depression, benefiting the 2016 electoral prospects of both Republicans and extremist fruitcakes on both ends of the spectrum.



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