Tuesday, April 16, 2013

Goldman Sachs Continues to Diss Gold

“Although gold has now traded below the $1,450/toz target embedded in our short recommendation, we are maintaining our short as we argued last week that prices could decline more than we initially thought as positioning is stretched and the momentum is to the downside,” Goldman Sachs said in a note today.

“As a result, we are now lowering the stop to $1,400/toz (which locks in a potential gain of 12%) while we wait for evidence of a bottom, though we are not changing our price forecasts now,” they said.

Goldman also said the price declines in base metals have gone on far enough that these declines are “beginning to generate significant micro adjustments in fundamentals to support higher prices.”

Thiss really seems to be just trading talk, trying to time exact bottoms and tops. For long term investors, gold should continue to be accumulated, as the Fed continues over the long term to debase the currency, just what Ron Paul was concerned about decades ago when gold was a tenth of its current price.  

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