Zero Hedge reports that Goldman Sachs is apparently telling its clients to sell gold today.
“Gold is a ‘slam dunk’ sell for next year because the U.S. economy will extend its recovery after lawmakers resolve stalemates over the nation’s budget and debt ceiling, Goldman Sachs Group Inc.’s Jeffrey Currie said yesterday on a panel in London.
‘The bank has a target for gold prices next year at $1,050 an ounce,” said Currie, Goldman Sachs’s head of commodities research..”
What happened the last time Goldman urged its clients to sell gold?
“It is worth remembering that Goldman, to much fanfare and media attention, “told clients” in November 2007, to sell gold. On November 29, 2007, Goldman recommended that investors sell gold in 2008 and it named the strategy as one of its ‘Top 10 Tips’ for the year.
Gold subsequently rose nearly 6.4% in December 2007 alone – from $783.75/oz to $833.92/oz.
Gold then rose another 5.8% in 2008 – from $833.92/oz at the close on December 31, 2007, to close at $882.05/oz on December 31, 2008.
Gold rose 12.2% in the 13 months after Goldman’s sell gold call. Gold then rose 23.4% in 2009, 27.1% in 2010, 10.1% in 2011 and 7% in 2012.”
“The truth is that Goldman Sachs and the rest of the big banks on Wall Street invariably ‘blow up’ customers to make money for themselves,’ explained Money Morning Capital Wave Strategist Shah Gilani.”
But it’s investment banker, economist and bestselling author of Currency Wars: The Making of the Next Global Crisis, Jim Rickards who gives the sagest of investor advice…
“Best advice I can give you is to listen carefully to Goldman Sachs then do the opposite.”
And if you’re inclined to act on Rickards’ wisdom, Gold Core has a great ebook on the best gold storage options here.
Image courtesy of William Banzai