Eric Sprott's Hope Still Springing Eternal

At a press conference yesterday, he said that gold will reach $1,500/oz sometime this year and $2,000 within the next two years. Sprott also made the announcement that he will donate C$100,000 to the Canadian Athletes Now Fund for every Olympic gold medal a Canadian athlete wins. That pledge is on top of a C$215,000 committment to help Canadian athletes at the Winter Games with travel and lodging expenses.


Far be it for me to be churlish, but $1,500 gold seems a bit of a stretch right now. At spot gold's current price of $1,057.00, gold would have to rise by $443.00 or 41.9% to make that goal. Gold did rise from $810 on January 16th 2009 [London PM fix] to $1,218.25 on December 3rd [AM fix] for a gain of $408.25 or 50.4% from yearly low to yearly high. So, if 2010 turns into another 2009, $1,500 at some point in the year isn't totally out of reach....assuming that the current low is at or near the yearly low.

However, that's going to take a real bear market in the greenback. We're nowhere near that stage now.