"Welcome to the ""$1,000 Gold"" Fan Club"

"Welcome to the ""$1,000 Gold"" Fan Club"," And, as far as fan clubs go, this one's membership is swelling daily.
 But whether these folks are newcomers to the gold bandwagon or have been riding confidently along for years, it's remarkable just how many analysts now see nothing but good for gold.


o  The Falling Dow/Gold Ratio.
 ""What is interesting,"" said analyst Dr.
 Simply put for the holder of gold - the world's only honest currency, since it cannot be printed by some dishonest central banker - the Dow, although it increased in value in dollar terms, has continued to decline in gold terms with the result that, today, it 'only' takes 20 ounces of gold to buy one Dow Jones Industrial Average.


""Now, you may think that I have become insane (but) I am convinced that the US Fed's monetary policies will lead to exponentially widening wealth inequity and impoverish the majority of US households, which will then lead to social strife, protectionism, war, and the breakdown of the capitalistic system.
 Possibly one will be able to buy, sometime in future, one Dow Jones with just half an ounce of gold!""

With that in mind, Farber believes we could be in store for a lot more than just $1,000 gold.
 John Hathaway, managing director of Tocqueville Asset Management, believes $1,000 gold isn't far off.
 Let's not forget, in 1980 dollars, gold is less than half of its nominal price today.
 The ratio of financial assets to physical gold is at the low end of a historical range.


""Gold is a good value, certainly, at these prices, just based on the considerations we've discussed.
""

o Central Banks Abandon Control of Gold.


They chose to focus on staving off global recession.
""

o Slashing Interest Rates Will Only Add Fuel to the Fire.
 His reasoning? Bankers are out of bullets when it comes to settling U.
 debt battles.
 ""The problem however, is not the supply of surpluses, but the imbalance between the short term and long term obligations of the world's biggest debtor and the United States.
 Today, central banks continue to boost money supply but the monetary aggregates were already growing at double-digit levels and they had little room to maneuver.
 But this will not correct the imbalances.
 To date, they have only addressed the symptoms of the underlying crisis.
""

o ""Gold Is the Purist Play Against the Dollar.


""Gold is the purest play against the dollar,"" Louise Yamada, managing director of Yamada Technical Research Advisors said.


o ""Still Cheap Relative to Oil or Base Metals.


""We think the price could reach $850 an ounce by the end of the year, based on issues in the US housing market,"" senior equities analyst Greg Canavan says.
 We have also been forecasting an eventual price of $1000, and we would expect that in the first half of 2008.
 In Europe, the euro is getting stronger, with implications for exports.
 ""Also in Europe, the Bank of England had said it would not be bailing out lenders.
 So investors are seeing that gold is a fundamental store of wealth.
 Also, it is considerably undervalued right now so it is more than just insurance.
""

o World Currencies ""Becoming Increasingly Doubted.


""A blow-off leg in gold is looking increasingly likely once it clears $1,000.
 The US dollar is now trading at record lows, with no bottom in sight.
 Gold is rising against all the world's currencies, indicating that fiat national currencies backed by nothing but promises from over-indebted governments are becoming increasingly doubted.


""How high? A doubling of the gold price has happened before in blow-offs like the one I am describing, so $1,500 or more is not out of the question.
where are you with your investments? Are you overly reliant on those worrisome ""paper"" investments at a time when more and more people want to hold something of authentic value in their hands? If that's the case - and even if you've never joined a fan club your entire life - today may be the perfect time to become a member of the $1,000 gold fan club.


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