$2,000 Gold Soon A Reality?
This from Rick Ackerman's daily commentary yesterday:

Over the years, we have asserted here many times that, during the deflationary bust that lay ahead, even financial wizards would find it challenging to hold onto a small fraction of their peak net worth. Although we lacked the imagination to envision bullion and Treasury paper as the last assets left standing, we always suspected that even the very smartest of the smart money would somehow get trapped.

That is now clearly a possibility if you grant that the U.S. could default on its obligations. And yes, we know that, technically speaking, because Uncle Sam can gin up as much digital cash as it takes to pay the interest and principal on America’s debt, a true default cannot occur. But hyperinflation would have the same effect, wiping out those who now cling, via Treasury paper, to the branches of a tree sprouting from the sand of a small island that will soon be submerged. The rentiers (and pension funds, and hedgies, and many others) may be dry at the moment, but the tide of debt seems all but certain to inundate them.

Under the circumstances, although Gold is officially execrated rather than sanctioned, we see no reason to worry about the health of its long-term uptrend. That said, we have turned cautious on gold for the near term because the December Comex contract yesterday came within $4 of the $1728 Hidden Pivot rally target we’d been using as a minimum upside objective. If that resistance is easily brushed aside within the next day or two, however, it would be telegraphing the next big push – to $2000, and presumably beyond.