Monday, March 5, 2012

The Gold Bulls at Citi and the Problem with Picking Numbers Out of Hat

  • reports Citi is telling its clients that gold will reach $2400 dollars an ounce this year and “3,400 in future years”. The Citi report goes on to warn of short term weakness that could take gold back to $1,600 which Citi says would be an even better opportunity. This, of course, is picking numbers out of a hat, but it comes from the hat of a well known brand name in the financial industry, even if that brand name also qualifies to be in the ultra club of too-big-to-fail-Zombe banks.
    The only bit of newsworthiness that I see in this is that a mainstream financial entity has something positive to say about gold, but then again, these analysts from the ‘street’ have for years missed the gold rally so since it’s Monday I view Citi’s gold dispatch in a curmudgeon like way.  Please read more... 

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