Could gold prices reach over $8,000/oz by 2015?

Not likely (they better not - what would that say about the world economy?) but here's an interesting take on the possibility on the Business Insider website.There is a graph at the link.

You may have heard of the "Pareto principle" – it's often referred to as the "80-20 rule." The idea is that 80 percent of the effects of something come from just 20 percent of the causes – so maybe 80 percent of people control 20 percent of the wealth, or 80 percent of sales come from 20 percent of your customers. 

Zero Hedge posted a new report by Erste Group, the Austrian investment bank, which says this principle can be applied to bull markets as well, including the current bull market in gold:  

80% of the price performance tends to occur in the last 20% of the trend. The third and last phase is the phase of euphoria and ends in a “blow-off”, i.e. a parabolic increase. It is dominated by excessive optimism and a “this time it’s different” attitude. Gold would probably be increasingly traded in backwardation during this phase, which would be a clear sign of a buying frenzy. At the end of this cycle the smart money will have distributed.

Erste analyst Ronald-Peter Stoeferle says that following this line of thinking, you get an $8,300 price target for gold by the spring of 2015 ...

Comments

[Esa Mäkilä]

For me it is not knew if that price of gold in 2015 will be that so expensive,in Finland country there are a lot of business running for gold for cash which is now really successful because of increasing the price for gold and lot of investors really want to invest in gold specially when 2015 is come.