Gold Going To $1400, Silver $25--Jefferies

The boys are finally coming around to gold, but are still too cautious. Today Jefferies released a report which said gold is going to $1400 and silver to $25. Considering that gold is currently trading around $1330 this is a very conservative target and still reflects Wall Street's oblivious nature towards gold. From Dow Jones:
 Jefferies and Co. predicts gold will hit $1,400 over the next 12-18 months and silver will reach $25, upping its price targets from $1,300 and $20. A note to clients cites potential further expansion of the Fed's balance sheet, global currency debasement fears and continued investor and central bank metal accumulation. "Added silver investment demand combined with prospects of developing country economic and industrial growth...should allow silver to outperform." Jefferies recommends adding positions in Barrick (ABX), Newmont (NEM), Agnico-Eagle (AEM), Coeur d'Alene (CDE) and Hecla (HL). "We believe Barrick and Newmont have most attractive upside near-term while we favor Coeur given its attractive gold and silver production growth into 2011."
You will know the bull market in gold and precious metals is over when Wall Street starts getting overly bullish. Analysts will come out with exhaustive research showing why gold is going to double in the next 6 months, etc. Maria Bartiromo will be flashing her new gold jewelry on CNBC and telling you that she bought gold to protect herself from inflation. This will be the time to get out, but we are far from that point.

Black Swan Insights

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Gold Headed to $1600 by 2012--Deutsche Bank

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