Gold, silver likely to go "much higher still" in medium term with monetary policy outlook clear, says David Rosenberg, chief economist at Gluskin Sheff. Notes Fed signaling its intent on embarking on QE2, Bank of England doing likewise, while fiscal pressures building in euro zone, so ECB likely to extend its accommodative posture. Adds industrial production in Japan has now declined 3 months in a row and JPY at similar level to where BOJ made unsterilized FX intervention effort, and central bank planning more monetary easing efforts. "We may not have a whole lot of conviction over the corporate profit outlook, but we do have conviction over the looming growth rate of fiat currency and we do have conviction over the supply curve for gold, which is perfectly inelastic on a near- and intermediate-term basis."I do not disagree about the prospects for gold and silver, but would note that both are currently overbought and the daily sentiment index for gold recently hit 90%, indicating we may be near a short-term top. Furthermore, Marc Faber said that gold and other commodities may suffer a large correction. However, this would be a buying opportunity.
Black Swan Insights
Marc Faber's October Outlook
Gold Headed to $1600 by 2012--Deutsche Bank
Soros: Economy At Risk of Double Dip, Gold Not Safe