The $1,000 Gold Fan Club? Absolutely. And, when it comes to fan clubs, their membership is increasing daily. There’s no question that the number of financial analysts seeing gold break the $1,000 mark has suddenly become as commonplace as Tom Brady’s touchdown passes. But whether these folks are newcomers to the gold bandwagon or have been confidently riding for years, it’s remarkable how many analysts now see only good things for gold.

This, for example, is what some $1,000 gold tipsters have to say…

o The drop in the Dow/Gold ratio. The Dow/Gold ratio, the number of ounces of gold it takes to buy a share of the Dow Jones index, fell from 42 in 2000 to almost 19 in 2007. “What’s interesting,” said analyst Dr. Marc Farber, “is that despite the stock market rally since October 2002, the Dow/Gold ratio has continued to fall in value in dollar terms, it has continued to decline in gold terms with the result that, today, ‘only ‘ It takes 20 ounces of gold to buy a Dow Jones Industrial Average.

“Simply put, since the year 2000, gold has risen at a much faster rate than the Dow Jones and I expect this outperformance to continue for years to come until ‘gold coin’ holders can buy a Dow Jones with only one ounce of gold.

Now, you may think I’ve gone crazy (but) I am convinced that the US Federal Reserve’s monetary policies will lead to exponentially increasing wealth inequality and impoverish the majority of US households. USA, which will lead to social conflicts, protectionism, war, and the rupture of the capitalist system.
“However, if you consider that in 1932 and in 1980 you could buy a Dow Jones Industrial Average with just one ounce of gold, then perhaps my views are quite conservative. Possibly one will be able to buy, at some point in the future , a Dow Jones with only half an ounce of gold.”

With that in mind, Farber thinks we could be in store for much more than just $1,000 worth of gold.

o In 1980 dollars, gold is half the price. John Hathaway, managing director of Tocqueville Asset Management, believes that $1,000 worth of gold is not far off. “I don’t think it takes much. Let’s not forget that, in 1980 dollars, gold is less than half its current nominal price.

“The disparity between the amount of paper that has been created since 1980 and the amount of gold that has been produced since then is huge. The ratio of financial assets to physical gold is at the low end of a historical range. If outside to trade all the gold that has ever been mined, which is a very conservative approach, and then take the valuation of all the world’s stock markets and all the world’s bond markets, gold is about 3%, compared to a figure in the mid-20% range in 1980, which was the high point of the bull market for gold and the beginning of the bull market for financial assets.

“Gold is certainly a good value at these prices, just based on the considerations we’ve discussed. Even if you don’t think worst outcomes are in the cards, gold is still rare and hard to find, and you think To me, these companies are having the hardest time trying to maintain production, let alone build it.”

o Central Banks Relinquish Control of Gold. Two Citigroup metals analysts wrote that central banks faced a choice between a global recession and their continued “control” of gold.

They chose to focus on avoiding the global recession.

“We believe that the political resolution of the credit crunch will take the form of a massive and extended ‘reflationary bailout’ in a new cycle of global credit creation and competitive currency devaluation that could drive gold to $1,000/oz or higher.”

o Slashing interest rates will only add fuel to the fire. Analyst John Ing believes that $1,000 gold is on the horizon. Her reasoning of him? Bankers don’t have bullets when it comes to resolving US debt battles.

“Ironically, while there is a crisis of confidence in the credit markets, the world is awash in liquidity due to the huge current account surpluses of China and other Asian countries, as well as the Middle East,” Eng wrote. “However, the The problem is not the supply of surpluses, but the imbalance between the short-term and long-term obligations of the world’s largest debtor and the United States.

“As long as there is a lack of confidence in the short term, central banks face the dilemma of how to provide liquidity. Today, central banks continue to boost the money supply, but money aggregates were already growing at double-digit levels. and they had little room to maneuver. What is likely then is a drastic reduction in interest rates, which will serve as a short-term palliative. But this will not correct the imbalances. Central banks have tried to stabilize the global financial system by injecting large amounts of liquidity into the markets. To date, they have only addressed the symptoms of the underlying crisis. The situation will get even worse.”

or “Gold is the purist game against the dollar.” When Citigroup’s former head of technical research predicts that gold is headed not for $1,000, but $3,000, it makes perfect sense to pay attention.

“Gold is the purest game against the dollar,” said Louise Yamada, managing director at Yamada Technical Research Advisors. She predicted that gold would top $730 on its way to $3,000 a decade from now.

or “Still cheap relative to oil or base metals.” Australia Fat Prophets Newsletter is another prominent member of the $1,000 gold fan club.

“We think the price could reach $850 an ounce by the end of the year, depending on the problems in the US housing market,” says senior equity analyst Greg Canavan. “US housing was an accident waiting to happen. We’ve also been forecasting a final price of $1,000, and we would expect that in the first half of 2008.

“In the US, we expect more interest rate cuts. In Europe, the euro is strengthening, with implications for exports. It could lead to a slowdown there,” he added. “Also in Europe, the Bank of England had said it would not bail out lenders. But now it has been told it must. So investors are seeing that gold is a fundamental store of wealth.”

Added Canavan: “You should have 10 percent of your portfolio in gold bullion or shares. Plus, it’s now considerably undervalued, so it’s more than just insurance. Despite being at 20-plus-year highs, it’s still it is cheap relative to oil or base metals.”

o “Increasingly questioned” world currencies. James Turk in his Free Market Money and Gold Report I think $1,500 gold is possible.

“It looks increasingly likely that gold will break away once it breaks above $1,000. Think about this for a moment. The US dollar is now trading at record lows, with no bottom in sight. Commodity prices are rising, with wheat above $9 a bushel and crude oil looking increasingly better supported above $80 a barrel Gold is rising against all world currencies, signaling that fiat national currencies backed by nothing more than promises from over-indebted governments are increasingly being called into question.Britain has just experienced the world’s biggest bank run since the 1930s….We should be mentally prepared for the possibility of gold breaking above $ 1,000 in the next few months, and then continue to go higher.

“How high? A doubling of the gold price has happened before in bursts like the one I’m describing, so $1,500 or more isn’t out of the question.”

So… where are you with your investments? Are you placing too much trust in those worrisome “paper” investments at a time when more and more people want to hold something of genuine value in their hands? If that’s the case, and even if you’ve never joined a fan club in your life, today may be the perfect time to become a $1,000 gold fan club member.