Citigroup Analyst Predicts $2,000 an Ounce Gold in next 2 Years: Another Stupid Move by U.S. Government Where we Should Have Invested the Bailout Money in Gold Bars.

So what do we get for our massive bailout of Citigroup?  How about an ominous warning that global markets will collapse or we will face massive inflation.  Either way, the suggestion from one analyst at Citi is gold will go to $2,000 in the next 2 years.  We just backstopped $306 billion in toxic mortgages from Citi and this is what we get?

Gold is currently trading at approximately $820 USD an ounce.  This estimate has gold more than doubling over this timeframe.

Now don’t you think it would have been smarter for the U.S. Government to simply buy up $306 billion in gold bars and then sell them in 2 years for $743 billion?

“(Telegraph) Mr Fitzpatrick said Britain had made a mistake selling off half its gold at the bottom of the market between 1999 to 2002. “People have started to question the value of government debt,” he said.

Citigroup said the blast-off was likely to occur within two years, and possibly as soon as 2009. Gold was trading yesterday at $812 an ounce. It is well off its all-time peak of $1,030 in February but has held up much better than other commodities over the last few months – reverting to is historical role as a safe-haven store of value and a de facto currency.”

Hah!  People have started to question the value of government debt?  You don’t say.  I wonder why the debt is going up so quickly?  Hmmm.

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  1. BC said:

    Gold had a nice $30 gain today a 7 month high. It’s not going to be long until it reaches $1000 again. The stock market didn’t react well with the stimlulus bill signed today either. Gold looks like a safe place for the near term.

    February 17th, 2009 at 2:56 pm

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