$2,400 Gold by End of 2014

On October 15, 2013, William Kaye predicted $2,000 to $2,500 gold by the end of 2014 and possibly $60 for silver. This confirms Francisco Blanch’s prediction in September 2012 that we would see $2,400 gold by the end of 2014.

William Kaye

“There is absolutely no question that we are now very much in the end game.”  William Kaye, who is one of the most well-connected hedge fund managers in the world, told KWN why the recent plunge is being orchestrated and what will emerge from all of this.  Kaye, who worked for Goldman Sachs in mergers and acquisitions 25 years ago had this to say:

The objective would appear to be to try to touch the lows of late June.  We will see if they can actually make that happen.  I will say that a lot of gold is being lost by the West in the process.  By that I mean physical gold is transiting very rapidly from the West to the East.  That process is now accelerating because Asian buyers are very keen to buy into what they perceive to be an incredibly low, and without a doubt in their minds, an artificial price.

The implications are extremely serious for the West here.  The harder these guys push it, and the faster they try to push things lower, this is causing them to lose an immense amount of physical gold in the process.   We saw backwardation reappear for a brief period of time last week.

And finally

“So I would say that the fourth quarter of this year is most likely the end game.  And as we get into 2014, the risk/reward is such that it is highly likely we will see a slingshot effect much higher for the price of gold.  I would project a price of $2,000 to $2,500 an ounce for gold by the end of 2014, and quite possibly $60 for silver.  Meaning, once this short-term noise is over, the reward in the next year for patient investors will be staggering.”

Francisco Blanch

Francisco Blanch, from Bank of America Merrill Lynch, stated:

“Given the new open-ended nature of QE3, the upward pressure on gold prices should continue until employment is strong enough to require a change in policy,” Blanch added. “In our view, this is unlikely to happen until the end of 2014.”

The Fed used open-ended language in describing how long QE3 would last, saying in its statement it would continue these purchases — and possibly employ other methods — until the outlook for the labor market improves substantially. As we all know, nothing has improved at all, let alone “substantially.”

Blanch explains in his report, Gold Under QE-Infiniti: The combination of open-ended MBS purchases, and the possibility of additional Treasury bond purchases starting in December, could further lift gold prices by adding over $2 trillion to the Fed’s balance sheet over the next two years.

Please note: Posts in the Watchlist are more accountability than fortune-telling. When people make claims and future predictions, like Max Keiser’s prediction of fiat collapse, I like to make a note of it, so we can determine who is accurate and who is not. I also use the Watchlist as a reminder of important events, like Fed meetings and deadlines.

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