Can Gold make it to $800?
Peter Oberois
Apr. 28, 2007

Gold is struggling for some time to cross the $700 an oz level. Some are wondering if it can really break through the barrier of $725?

Gold has gone up for the same reason stocks have gone – the extra liquidity has no place to go. China and India are also responsible for gold buying and accumulating.

In the short run it seems gold is ready to go up even though oil may fall back and test $50 level. The problem for gold comes from starting deflation in the economy. The stagflation that started in 1981 is now transforming itself into deep deflation. The unemployment rate of 4% (underemployment actually) is now ready to shoot up to 12 to 25% by year 2012. The deflation is not that great for gold. It can create the damp in the gold market. If dollar collapses, however, gold will rise far above $800 an oz.

Can Gold make it to $800?
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