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Barrick Gold CEO: $2,000 Gold

Release Date: 
Friday, March 7, 2014

Gold and Silver Prices

Gold prices finished the week in positive territory, having tested recent highs on the heels of war rumblings in Ukraine, and U.S. dollar weakness, but fell slightly after the upbeat U.S. jobs report. “Gold prices are lower in early U.S. trading Friday, pressured by a surprisingly strong U.S. jobs report. Traders and investors were leaning the other way, looking for weaker-than-expected employment data…The U.S. dollar index is at a 4.5-month low. These currency moves have been a bullish underlying factor for gold and other raw commodity markets that are priced in U.S. dollars…The situation in Ukraine has for now changed from a serious geopolitical matter to more of a regional issue of lesser significance—from a market place perspective.” (“Gold Sells Off In Wake Of Upbeat U.S. Jobs Report,” Kitco News, 3/7/14.)

Gold closed the week at $1,340.50, up $10.90. Silver prices closed down $0.34, finishing the week at $20.99.

Barrick Gold CEO: $2,000 Gold

Speaking at the Prospectors and Developers Association of Canada convention, Barrick Chief Executive Officer Jamie Sokalsky provided his long—term price target for gold. “‘Ultimately we are going to see gold go back up and I think we could challenge the highs that we saw a couple of years ago,’ Sokalsky said at a Bloomberg event. ‘Within two or three years, I wouldn’t be surprised to see gold back up towards $2,000.’” (“Barrick CEO Says Gold May Rise Close to $2,000 in 2 Years,” Bloomberg, 3/5/14.)

Nomura Bullish on Gold

Japan’s largest bank, Nomura, believes gold prices are headed higher.

“Analysts at Nomura Securities this morning upgraded their view of precious-metals prices, and the gist of the argument is that the conditions which sent gold’s price tumbling 28% last year appear to have vanished. It’s a familiar theme to close watchers of the niche. ‘Like a phoenix regenerating from its ashes, cyclical gold appears set to recover,’ write Tyler Broda and six co-authors.”

From the Nomura report: “Last year’s shift in the gold market was rapid and the price response substantial. Instead of a multi-year downtrend, with disinvestment putting pressure on prices over time, many of the variables that drive gold prices have already reset to an extent…Long-term demand support from Asian nominal income growth, an evolving post-QE macroeconomic environment and lower disinvestment potential move our gold equilibrium model to now expect price increases over the next three years.” (“Gold is Heading Back to a Bull Cycle, Nomura Says,” Barron’s, 3/5/14.)

China is Biggest Gold Driver: HSBC

HSBC’s research team believes that China’s gold consumption will be the greatest driver for gold prices this year.

“China’s buying of gold jewelry, coins and bars is now the biggest driver of prices, not investment demand from the West, according to HSBC Global Research. ‘We would argue that physical demand trends in the emerging world will largely define gold’s price movements this year,’ HSBC analysts James Steel and Howard Wen said in a research note. China alone can take up the equivalent of half of the global gold mine output, while a possible recovery in Indian demand could also act as a boost for the yellow metal as long as the Indian authorities reduce import tariffs on gold.” (“China Now Biggest Driver of Gold Prices, HSBC Says,” Wall Street Journal, 3/4/14.)

Goldline’s Express IRA Program

Many Goldline clients choose to include precious metals as part of their retirement planning especially during times of economic crisis and uncertainty.* Goldline’s Express IRA allows clients to acquire precious metals on their schedule; they no longer have to wait for your self-directed IRA to be funded before getting started.

Goldline's Express IRA not only provides clients with the ability to diversify their IRA on an expedited basis, clients can also qualify for Goldline's ground-breaking Two-Way Price Guarantee Program when they acquire $10,000 or more of our exclusive bullion coins. When an Express IRA purchase qualifies for Goldline's Two-Way Price Guarantee Program, clients are protected on short-term upside and downside market movement: they can either call to reprice their coins if the selling price falls (up to a maximum of 28 days depending on the size of the purchase) or, if the selling price of the coins increase during the qualifying period, clients can call Goldline to acquire additional coins at the original selling price.

Goldline provides a wrap-up of the week's precious metals news along with important commentary on the American Advisor Week in Review audio program. Listen to the show below:

*Federal IRA tax laws are complex and may change from year to year. Goldline believes it is appropriate to have 5%-20% of retirement portfolio allocated to precious metals. Other individuals and institutions may recommend different percentages. As with any investment, you should consult your tax advisor before making a decision regarding precious metals IRA investments.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.