Gold price exceeds $1500 per troy ounce by June 30, 2010.





The monetary base of the USA has doubled. Given the thinking of some academics, the general price level is likely to roughly follow suit. Dating back to the last great gold high in 1980, gold has only advanced 50%, much less than other asset classes. It is likely to go higher, but by how much and when?

Biggest buyer of Gold is the Indian marriage season retail customer beginning September to Januay (about 800 tons annually, 400 this year).
So gold could very well be range bound between $900 to $1200 until September 2010. By then a second stimulus could be

announced really aggravating inflation and raising Gold prices. As of now we are just barely safe, but safe from hyperinflation.

Watchout if another stimulus pops up in the trillion range to create jobs that have not appeared with the first stimulus.

As China etc will not openly buy gold to keep prices low, but secretly stockpile. The bankers too will play tricks. Sure Gold will be worth a lot more than 1300 in 2011 but artificial price controls will be implemented. This is the era of first class crooks. One sudden day the dollar will drop 50% and gold may spike to $5000. Remember most of these events are staged

however random they seem. This time I suspect a US Chinese conspiracy.