K P answered: It will definitely reach $2500/oz. Adjusted for inflation the peak price of gold is around $3000/oz. We are in much worse shape now than when the last peak was reached and recent stimulus spending not only by the US, but by countries all over the world will tend to deflate their currencies not necessarily relative to each other, but relative to commodities. This will tend to inflate the price of gold and other commodities. Also notice that central banks are starting to buy gold because they want something solid, they can hold onto rather than more paper money in their reserves. Most notably China has been accumulating gold and India just bought a big chunk of gold from the IMF. They wouldn’t be doing that unless they were losing faith in paper currencies.
Whether this will actually happen remains to be seen, but $2500 in the next year or so does not sound so crazy to me. It’s only a matter of time before the FED has to protect the dollar, which is one of its sworn duties. Any decision to slow down the massive stimulus, will cause dollar rallies and gold sell offs. I think we’re nearing the top of our stimulus output and so the bottom of the dollar and the top of gold. I wouldn’t want to bet on that though. :)