Blanchard and Company, Inc. remains as bullish as ever on gold’s future. But what are other financial experts predicting for the new year?

Jim Rogers
Commodities expert Jim Rogers co-founded the Quantum Fund with billionaire George Soros in 1970, and for the next 10 years the portfolio gained 4,200% while the S&P advanced about 47%. A frequent financial-news commentator and a staunch critic of the Federal Reserve and U.S. monetary policies, Rogers sees gold eventually surpassing $2,000 an ounce:

"Gold is going to go much higher in the course of the bull market. Doesn't mean it can't go down 20% next year, but during the course of the bull market, it is going to go much higher. It is certainly not a bubble yet," Rogers said. Furthermore, "Gold, if you adjust it for its old highs, adjust it for inflation back in 1980, gold should be over $2,000 an ounce right now. In my view, in this bull market in commodities, gold will make all-new highs adjusted for inflation.

"If the world economy is going to get better, commodities are going to lead the way because there are shortages developing in all commodities. If the world economy is not going to get better, I promise you stocks are not going to be a good place to be, but commodities will be the better place to be because they're printing so much money. And if the world economy doesn't get better, they are going to print a lot more money."

Source: http://www.thestreet.com/story/10627203/1/jim-rogers-buy-gold-not-gold-stocks.html?puc=_ttt_html_pla1&cm_ven=EMAIL_ttt_html

James Turk
A longtime gold advocate, author, and founder of GoldMoney.com, James Turk recently weighed in with a bullish forecast for gold:

"There's no fundamental reason to suggest that the dollar is going to turn around and that gold is going to do anything except go higher. So my expectation for next year is that you're probably going to see a gold price maybe $1,800 to $2,000 by the end of 2010," Turk said on Max Keiser's "On the Edge" show.

Source: http://www.youtube.com/watch?v=9VB7euck9r8&feature=player_embedded

Marc Faber
An economist and publisher of the "Gloom, Doom & Boom Report," Marc Faber said gold's recent gains have established $1,000 an ounce as the new minimum support level, especially with the hyperinflation he is predicting for the United States.

"We will not see less than the $1,000 level again. Central banks are all the same. They are printers. Gold is maybe cheaper today than in 2001, given the interest rates. You have to own physical gold," Faber said recently. He also said China will keep buying up resources, including gold: "Its demand for commodities will go up and up and up."

Source: http://www.bloomberg.com/apps/news?pid=20603037&sid=az6qQ8ZuXg9M

Faber later clarified his remarks but remains positive on gold:

"If the gold price breakout move above $1,000 is real, then gold should not decline again below the $950 – $1000 zone. Before, this range was resistance and now it should be a support range. However, if gold dropped below this range than I would be very concerned that a decline to around $800 could take place. I have consistently repeated that I hold gold and that I recommend the accumulation of gold."

Source: http://seekingalpha.com/article/173862-marc-faber-clarifies-gold-outlook

Peter Schiff
Once laughed at on the financial networks for his gloomy real-estate and Wall Street forecasts and his bullishness on gold, Euro Pacific Capital chief Peter Schiff has found vindication as his predictions have come true, most notably as gold hit a new all-time high this year. Gold has the potential to surpass $5,000 an ounce, he recently predicted.

"I don't think it's just possible - it is highly likely gold will hit $5,000," Schiff told Reuters.

"It's not too late for (buying) gold. I still haven't seen anything in the gold market that is reminiscent of any kind of mania or bubble. … The average American is still way underinvested in gold: probably 99 out of a hundred Americans don't own any gold at all other than their jewelry and most people who have jewelry are selling it for cash-for-gold programs.

"We have a ways to go. Even all the way up to $2,000 an ounce you're going to see a lot of retail buying. Once it clearly crosses the $2,000 level we'll start to draw in a wider segment of Americans. By the time it reaches $5,000, and it won't be that long, it will be a lot more common for people to own gold."

Source: http://www.forbes.com/feeds/reuters/2009/11/30/2009-11-30T190403Z_01_N30457029_RTRIDST_0_LS-GOLD-SCHIFF-INTERVIEW.html

Goldman Sachs
The Wall Street investment powerhouse, which has weathered the U.S. recession as well as anyone, has just issued its commodities outlook for 2010 and sees gold maintaining its current level and going as high as $1,350 per troy ounce (or "toz") by this time next year.

"We expect the low US real interest rate environment, continued gold-ETF buying and reduced Central Bank gold sales will allow gold prices to continue to move higher. We therefore raise our gold price forecasts to $1200/toz, $1260/toz, and $1350/toz on a 3-, 6-, and 12-month horizon, respectively, with a 2010 average price forecast of $1265/toz and a 2011 average price forecast of $1425/toz. While an earlier than expected tightening of US monetary policy presents a substantial downside risk to gold prices in 2010 and 2011, we believe the near-term risk to our gold price forecast is skewed to the upside." However, Goldman differs from many in the pro-gold camp in predicting "subdued" inflation in the United States and a rise in interest rates from the Federal Reserve, noting that these conditions would impose "significant downward pressure" on gold prices.

Source: http://ftalphaville.ft.com/blog/2009/12/03/87006/goldman-sachs-up-12-mth-gold-forecast-to-1350toz/?source=rss

Posted By Blanchard and Company, Inc.