The gold bugs are coming back
Gold was a fraction away from $1700 today and with the possibility of QE3 next week, I’m forecasting a deluge news stories about gold bulls.
Today a Thomson Reuters analyst is in the FT forecasting $1850, in the coming months and $2000 in the first half of 2013.
What’s interesting is that the public and the smart money is not overly long gold. In early August, gold longs at comex were near the lowest levels since 2008, when gold was under $1000.
Longs have begun to buy, but the bullish stories have only begun to circulate. Don’t even start to get worried until the crazy $3000 and $5000 forecasts start to hit the major financial press.