In Case Of NEW QE, Gold To $1,900-$8,500 Says SocGen
by Tyler Durden
In a previous post we showed how, despite Goldman’s best wishes, the market may have just priced itself out of a treat from the Fed tomorrow, and right into a trick. That said, in case the Fed has in fact succumbed to the pleadings of its superiors (read Primary Dealers) and does proceed with some seriously unsterilized dollar mauling, the next question is what is the best hedge. SocGen asked the same, and provided several strategies to take advantage of central planners exhibiting a rare case of Einstein’s definition on insanity… over and over. Their “Strategy #1: Bolster Positions In Gold Ahead of QE3..” Why? Because once the next round of the gold juggernaut is unleashed, gold may go to anywhere between $1900, just shy of the all time nominal high, and $8500… just a tad higher than the nominal high.