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Sunday, January 27, 2008

How High Will Gold Go?

Looks like gold closed at $914.60 on Friday, a pretty amazing number, but I'm curious if we've seen the end of its meteoric rise. Will it hit $1000.00?

Honestly, I don't think the question is when, but more like how soon? For those who haven't been following gold lately, consider for a moment that it was only in the $600s this summer and now it's in the $900s. That's amazing growth! So how soon, and how high beyond that?

A real estate developer I spoke to recently opined that we were four months into a ten month recesion. Let's say he was right. If the recession has been driving gold prices, and it already went up by several hundred dollars in the early stages of the recession, does it have another $500-700 yet to go before things turn around? Can it actually go that high?

My guess is it will hit $1100.00 over the next 5 or 6 months before it falls to around $850.00 where it'll stick for the rest of the year. Then again, I don't know bupkiss about it, so take my guess with a grain of salt...or several... Anyone who makes investment decisions based on a random blogger's opinion may just prove that old adage about a fool and his money. Then again, it's your money and I may be spot on. Who knows?

Anyway, what do y'all think? How high will gold prices go in 2008, and where will they close the year?

In any case, I can't wait for the weather to warm up a bit! I just hope the high prices don't bring a bunch of claim jumpers out of the woodworks...