Monday, November 14, 2011

Goldman Sachs: "Stay Long Gold & Silver, Silver/Gold Ratio to Return to Historical Ratio"

Goldman Sachs is recommending traders stay long gold and silver.
Either QE3 is imminent, or another major metals smash is on deck as Goldman prepares to fleece their clients.
Astonishingly, Goldman indicates they expect the silver/gold ratio to return to historical levels- which would put silver at approximately $112.50 with current gold prices!!

Rolling long Gold: Buy December 2012 COMEX Gold (initial value of $1,800.5/toz, current gain $423.9/toz)
We expect gold prices to continue to climb in 2011 and 2012 given the current low level of US real interest rates, and as a result recommend a long gold position. With expiration approaching, we are rolling our outstanding long Dec-11 COMEX gold trade recommendation, entered on October 11, 2010 with an initial value of $1,364.2/toz and a current gain of $423.9/toz, into a long Dec-12 COMEX gold future position with a reference price of $1,800.5/toz.

The Squid's recommendation for Silver:

Over the long run, silver prices tend to track gold prices. Thus, our silver forecast reflects the historical ratio to gold.  What was that!?! Did The Squid just predict the silver/gold ratio to hit the historic 16:1!?!

GS 11.14