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

$ 1,000 gold fan club? Absolutely. And as far as fan clubs go, this membership is swelling daily. There is no doubt that the number of financial analysts who see gold topping $ 1,000 mark have suddenly become as common as Tom Brady goes naked. However, if these people are newcomers to the gold bandwagon or have confidence in riding for years, it is remarkable just how many analysts now see nothing but good for gold.

Here, for example, is what a few $ 1,000 gold prognosticators say ...

The Falling Dow Jones / Gold ratio Dow Jones / Gold ratio -. Number of gold ounces it takes to purchase one share of Dow Jones index - fell from 42 in 2000 to almost 19 in 2007. "What is interesting," said analyst Dr. Marc Farber, "is that, despite the stock market jump since October 2002, the Dow / Gold ratio has continued to decline in simple terms for holders of gold -. world's only honest currency, since it does not can not print some dishonest central banker - the Dow, although the increased value of the dollar has declined further gold terms with the result that today, 'only' takes 20 ounces of gold to buy one Dow Jones Industrial Average.

"Simply put, since 2000, gold has risen at a much faster clip than the Dow Jones and I would expect this performance to continue for the next few years to the" gold currency 'holders will be able to buy one Dow Jones with just one ounce of gold.

"Now, You May Think I'm becoming insane (but) I am convinced that the U.S. Fed monetary policy will lead to an exponential expansion of the wealth of injustice and impoverish the majority of U.S. households, which will lead to social strife, protectionism, war and breakdown of the capitalist system.
"However, if one considers that in 1932 and 1980 one could indeed buy one Dow Jones Industrial Average with a single ounce of gold, then maybe my views are quite conservative. Maybe nobody will be able to buy, sometime in the future, one Dow Jones with only half an ounce of gold !"

With this in mind, Farber believes that they may be in store for much more than just a $ 1,000 gold.

o In 1980 dollars, gold is only half the price. John Hathaway, Director of Tocqueville Asset Management, believes $ 1,000 gold is not far away. "I do not think that a lot. Do not forget, in 1980 dollars, gold is less than half the nominal price today.

"The difference between the amount of paper that have been incurred since 1980, and the amount of gold produced since then is just enormous. The ratio of financial assets to physical gold is on the low end of historical range. If you were to mark all the gold market, which is ever been mined, which is a very conservative approach, then the valuation of all global stock markets, all in the global bond markets, gold represents about 3%, compared with a figure in the mid-20% range in 1980, which was the top bull market in gold and the beginning of the bull market in financial assets.

"Gold is a good value, certainly, at these prices, just based on the considerations we have discussed. Even if you do not think the worst-case outcomes are in the cards, gold is still rare and hard to find, and believe me, this businesses have the hardest time trying to maintain production, much less build it ."

A central bank to leave the control of gold. Two Citigroup metals analysts wrote that the central bank to choose between a global recession continue to "control" of gold.

have chosen to focus on staving off global recession.

"We believe that the policy of solving the credit crisis will be in the form of massive, extended 'reflationary rescue' in a new cycle of global credit creation and competitive currency devaluation which could take gold to $ 1000 / g or more."

about cutting interest rates will only add fuel to the fire. analyst John Ing believes $ 1,000 gold is just on the horizon. His reasoning? Bankers from bullets when it comes to solving the debt the U.S. battle.

"Ironically, while the crisis of confidence in credit markets, the world is awash in liquidity due to the huge current account surpluses in China and other Asian countries, as well as the Middle East," written by Ing. "The problem, however, did not offer surplus, but the imbalance between short-and long-term commitment the world's largest debtor, and the United States ."

"So long as there is a lack of confidence in the short term, central banks are faced with the dilemma of how to supply liquidity. Today, central banks continue to boost money supply but the monetary aggregates, but is growing at double digit levels and had little room for maneuver. what is the likely time is dramatically lowering interest rates, which will serve as a short term palliative. But it will not correct the imbalance. Central banks have tried to stabilize the global financial system by pumping large amounts of liquidity into the market. until today, they are only addressed the symptoms of the underlying crisis. The situation will become worse ."

o 'Gold is a purist to play against the dollar ." When the former head of technical research at Citigroup predicts gold is heading to $ 1000, but up to $ 3,000, it makes a great sense to pay attention.

"Gold is the purest play against the dollar," Louise Yamada, director of Yamada Technical Research Advisors, said. She predicted gold will surpass $ 730 on the way to $ 3,000 within a decade.

O "Still Cheap compared to oil or base metals ." Australia Fat Prophets newsletter is another prominent member $ 1,000 gold fan club.

"I think the price could reach $ 850 an ounce by year's end, based on questions on the U.S. housing market," a senior equities analyst Greg Canavan said. "The U.S. housing disaster waiting to happen. They also predict eventual cost of $ 1000, and we would expect that in the first half of 2008.

"In the U.S., we expect a further reduction in interest rates. In Europe, the euro strengthens, the implications for export. This could lead to a slowdown there," he went on to say. "Also in Europe, the Bank of England said it would not rescue the lender. However, it is now said to be done. So investors are seeing that gold is a basic store of wealth ."

Canavan added: "You should have 10 percent of your portfolio in gold or gold stocks. Also, it significantly undervalued right now, so it's more than insurance. Despite the fact that more than 20-year highs in is still a bargain compared to oil or base metals ."

A global currency "is becoming increasingly doubted ." James Turk in his Freemarket Gold and Money Report believes $ 1,500 gold can .

"blow-off leg in gold is looking increasingly likely after it clears $ 1,000. Think about that for a moment. The U.S. dollar is now trading at record lows, with no bottom in sight. Commodity prices are soaring, with wheat more than $ 9 per container and crude oil in search of all well-supported over 80 dollars per barrel. gold rises to all the world's currencies, indicating that Fiat national currency backed by nothing but promises from over-indebted governments are becoming increasingly doubted. doživjelinajvećih Britain just world bank run since the 1930s. ... We need to mentally prepare for the possibility that gold exceeds $ 1,000 in the next few months and then just keeps climbing to kick-off high.

"What? Doubling the price of gold did not happen before the blow-off like the one I am describing, so $ 1,500 or more out of the question ."

So ... where are you with your investments? Are you overly reliant on those troubling "paper" investments at a time when more and more people want to keep something of genuine value in their hands? If this is the case - even if you never joined the fan club all his life -. Today may be the perfect time to become a member of the $ 1,000 gold fan club