Stocks are risky, Bonds are a bubble, gold the safe haven is looking safer every day

A slew of analyst came out with predictions for gold.  They weren't just bullish, they were superbulls.  George Soros came out too and said that gold was entering into bubble territory, of course he prefaced by saying that you always want to buy at the start of a bubble.  Anyway, Georgie I'm sure has done his homework but gold has years in the bubble phase.  The problem is that now it is fundamental, which is a dangerous word because everytime a bubble starts people say the fundamentals have changed. 

Well I would say that the fundamentals of gold have not changed, but the dollar has.  Since Bretton Woods took the US off the Gold Standard, gold has been waiting for a chance to teach the worthlessness of the fiat currencies. 

Let's go through some of the expectations of gold from around the block. 

Frank Mcghee sees new highs in 2011:

As the numbers start to fade away gold has come back to their highs.  They have kept thier place.  Their seems to be a much larger danger of a double dip.  When that happens or a sideways recovery happens, there seem to be so much more demand.  We should keep hitting fresh highs, in fact, McGhee seems to think that we will hit more new highs before 2011. 
Via Bloomberg:

Weinberg expects gold as high as $1,400 
“Either a swift economic recovery or further dismal economic performance should bring new buyers into the market,” said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt who was the most accurate forecaster in the first quarter and expects the metal to rise as high as $1,400 next year. “A stronger economy would create more jewelry demand. If the economy stays weak or gets worse, then investors will be looking for a safe haven.”
Analysts survey predict $1,500
Gold may rise as high as $1,500 next year, 21 percent more than the $1,240 traded at 1:45 p.m. in London, according to the median in a Bloomberg survey of 29 analysts, traders and investors.
Dan Breber expects $1,550:


Dan Brebner, an analyst at Deutsche Bank in London who is the most accurate forecaster so far this year, says the metal may reach $1,550.
Options traders bet on $1,500 and $2,000
Options traders are also betting on prices rallying. The biggest position is in call options expiring in November 2010, giving traders the right to buy the metal at $1,500 by then. The next biggest position is the call option for $2,000 expiring in November 2011, data from the Comex exchange in New York show.
Matthew Zeman says flight to safety resumes
“Gold is the primary beneficiary of this general angst over the economy,” said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. “The flight-to-safety bid is back on, and Treasury yields are a joke now. That’s a good setup for gold to go higher.”
Full disclosure, I own a position in GLD, and a short position in SPX

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