MACQUARIE: BUY GOLD NOW: It’s About To Rocket To $2250
BUY THE DIP.
That’s the advice of Macquarie Private Wealth in respect to gold.
Gold has certainly come off quite a bit, form a high of around $1900/oz. late last summer, to around $1650/oz. now. And the improving economy and the rise in real interest rates has made a lot of people turn negative on the metal.
Macquarie advises getting in now for 5 reasons:
Sentiment towards gold has no reached “extreme pessimism” levels.
March is seasonally the weakest month for gold.
Excess slack in the US economy will prompt the Fed to say on hold until 2014, as indicated, keeping short rates low.
The extent of the long-term rate rise is over. The Fed will ease some more.
Sovereign risk is not over.
Ultimately, they see it going to $2250/oz.
These two charts underpin their argument.