"Let me get right to the point. Gold’s going to $5,000 an ounce.
I know that sounds preposterous to most people. In fact, some of you probably think I’m crazy.
But for a whole host of reasons, $5,000 may well end up being a conservative estimate.
So before you start posting comments that I’ve gone bonkers, hear me out…
In 2001, gold traded as low as $255 an ounce. Within eight years, its price had quadrupled to more than $1,100 an ounce. How many investors thought that was possible, or even likely? Probably not very many.
Yet, it happened.
What’s more, since hitting its secular bottom back in 2001, gold has posted a positive return in every calendar year. So far, the current bull market has been pretty orderly.
During the past 10 years, gold has indeed become the trade of the decade, beating out commodities, oil, high-grade U.S. corporate bonds, U.S. Treasuries, and yes, U.S. stocks."
- By Money Morning on January 14, 2010