Breakout

Gold Is Heading to $2,500: Nenner

Jeff Macke
Breakout

In rocky times and emotional markets there's something calming about speaking to a pure chartist. If not calming at the very least decisive. Specific levels, tight stops, limited banter; a refreshing change from the debate on downgrades and enfeebled government agencies.

So it was with a sense of easygoing mellow that Breakout spoke to Professor Charles Nenner, Head of the Charles Nenner Research Center. We hit him up to tell us where he sees the future of the Big Three trading vehicles that aren't the Dow, S&P 500, or Nasdaq. Here's a summary of what Nenner had to say:

* Gold: It's going to $2,500 an ounce. "Our long term price target is two-and-a-half thousand," he says, adding that he doesn't think it's a straight shot from here. Inasmuch as $2,500 is 50% from here, Gold really doesn't need to get there in the immediate term, though that will seem conservative to the gold bugs in our audience.

* Dollar: There are two camps on the US Dollar. One group who says the greenback is headed for a steep fall, the other who says the world has nowhere else to go. Put Nenner in camp two. "The world is going to be stuck with the United States (whether we're) Triple A, Double A or Single A." Nenner scoffs at the Euro, suggesting it's not even clear the Euro is long for this world. On that the Professor and I can agree.

* Crude Oil: Nenner had an $86.50 target on WTI Crude, which was reached on Friday and was blown through today. I tried to get him to bite on the idea that a drop in crude would be nice for the consumer, but Nenner refused to see the glass has half full. He believes that crude is only going lower because of a crushing global demand slowdown. Let's just say we both have a point.

There you have it; short, sweet and to the point. Just like a chartist should be.

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