Thursday, May 7, 2009

Today in Gold: Thursday, May 7

Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:

"If the Gold Price Closes Above 920 it Will Run Long and Hard"

Main Points: The price of gold was up $4.50 to settle at $915.00 an ounce today, in light of a further weakened dollar and down stock market. GoldPrice projects that if gold finishes a session above $920, the sky's the limit.

Analysis: No actual numbers given or specific reasons why gold would suddenly run free if it could escape the stranglehold of $920. We've heard many make similar predictions based on thresholds that haven't come to fruition. We'll have to wait and see.

"Gold Prices will hit $1,500 in 'two to three years'"
Author: Goldbug

Main Points: According to an article quoted from Bloomberg, Aaron Smith of Superfund Financial Singapore claims that the price of gold could rise to $1,500 during the next few years, driven largely by a further weakening dollar.

Analysis: Following are a list of the times BullionVault has been quoted in this blog:

4/27: "China buying 'could push Gold Prices past $1,000 per oz'"
4/20: "Gold Prices 'could rise to $1,500 per oz'"
4/15: "Gold Prices 'to surge' at end of bull run"
4/9: "Gold Prices may rise by 'thousands of dollars' in the long term"
3/12: "Numis increases 2009 Gold Price forecast"
3/2: "Gold Price to stay high due to economic 'panic'"

There's a theme here. Maybe they are just sticking to their story, which is commendable. But keep in mind that we've never quoted BullionVault on a story that they or anyone have a negative outlook on gold.

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