Prediction of Gold Price from Citigroup

Last month, from The Telegraph, Citigroup released its prediction to gold price. Originally, this is just internal notes from Citigroup to its clients, stated that there is a possibility that gold price will reach US$ 2,000 per troy oz in two years forward. The possibility is on the end of 2009. This prediction was not denied, even explicitly stated by Citigroup’s Chief Technical Strategist, Tom Fitzpatrick.

According to Fitzpatrick, central banks have flooded monetary system with liquidity. Now, trillion dollars of money is spreading like dust, seeking places to drop down. After this, the amount of money and earthquake of inflation will emerge, something never occurred in the past. Still from Fitzpatrick, this money flood printed by central banks will result on peaking inflation or depression spiral, even riot or war in extreme. Whatever extreme that will emerge, gold price is increasing. Sadly, former Chairman of Federal Reserve on 1979-1987, Paul Volcker, has similar analysis. Volcker is newly appointed Chairman of Economic Recovery Advisory Board by President Elect Barrack Obama. He said that something revealed in 2008 economy crisis is financial system failure he never experienced during his life before.

It seem that the world is getting more and more grim from this day forward, so save yourselves and your loved ones dude!