Home > Coming Events, GOLD, Precious Metals, Silver > $2,000 Gold And 10 More Surprising Predictions From Credit Suisse

$2,000 Gold And 10 More Surprising Predictions From Credit Suisse

February 8, 2011

Gold is negatively correlated with real Fed fund rates

You’re not going to make money betting on the consensus. So if you’re looking for contrarian investments, Credit Suisse’s Andrew Garthwaite has picked out 11 economic events that are more likely than anyone thinks.

Surprise scenarios include $2,000 gold

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by year-end. Several factors support this “surprise” including:

  • Gold goes up when real Fed fund rates are negative — and they are
  • Excess leverage leads to money printing or default
  • China and Japan haven’t started buying gold yet
  • Gold does not display characteristics of a bubble
  • The inflation-adjusted gold price is still well-below peak

Credit Suisse is keeping an official target of $1,500 for gold, but it admits that these factors could drive a major surprise to the upside.

Garthwaite also names a booming U.S. economy as a viable scenario. Here are the rest of the surprises:

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  1. September 13, 2011 at 5:35 am

    $2,000/oz for gold by the end of 2011 still looks like a good call. The gold price has been very volatile in recent weeks as the markets swing wildly between fear and relief, but the underlying trend is still up. If Bernanke comes out with QE3 next week, gold may hit $2,000 by October!

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