$15.00 by end of summer, over $20.00 by New Year's.
Don't underestimate what happens next....Euro abandoning austerity, lower rates, China buying metal like crazy, big banks exiting shorts, and the FED statement recently....along with other bullish factors.
$9 by the end of the year barring industry consolidation. EGO is a low cost leader for gold and as long as that continues they will survive even if there is industry consolidation. With industry consolidation EGO may be $7 by end of the year. If you allocate 15% of your portfolio to gold stocks, you could allocate that as 9% long GDX/J, 3% short a high cost producer, and 3% long EGO. If we're looking at 3-5 years out, barring political risk, EGO will clean up.
$2 to $3. Gold will be sub $1000, maybe back to $600. Simple reasons are 1) world wide recession and 2) it's simply time for one of the down cycles and every mother's son is bashing the commodity. Gold was $600 in 81, $250 in 2001 and back to $600 in 04. This run to $2000 was silly and if nothing else it's simply payback time.
I think this THE most reasonable & ACCURATE forecast......and I'm sitting on the sidelines; don't any any physical metal or mining stocks.....I expect to wait several years for G&S to bottom out. I think all the PM dealers are ex mutual fund salesmen.....their mantre is & always has been BUY, BUY, or BUY MORE. Have you ever asked yourself the question of WHY PM dealers nave NEVER recommended a time to SELL....it's because that is where the seller gets scr**ed....and people who face a situation of having to SELL, will NEVER come back & be a buyer.