Goldman Puts Gold At $1650 An Ounce

So what do you do when one of your price target gets met, just as you predicted?Many experts say that's when it's time to sell.Risks have been taken goals have been met and profit has been earned.Next!. . . Not so fast!

Prior to now, Goldman Sachs had a price target for gold at $1365 an ounce.Today, that 12 month price target has been revised higher to $1650.In other words - "Don't Sell."

With the Fed's recent announcement to resume buying U.S. Treasuries, Goldman was quick to react in raising its gold price target.Goldman believes the Fed will buy as much as $1 trillion worth of treasuries.In other words we can't sell enough to foreign investors anymore to raise (borrow) enough money to fund all the scheduled spending.I mean really, isn't that all we are doing?

In my opinion this evidences the fact that the Fed has little confidence that raising taxes on the rich is enough to stimulate the economy and begin to pay off debt.Frankly, news of another trillion in treasury purchases by the Fed, should have been enough to drive gold much higher than its current level.I guess profit taking is always too tempting for some to pass up.

The bottom line here is that nothing has changed.We will continue to borrow to stimulate and there really is no end in sight to the Gold Bull Market.Global gold demand is still high, inflation fears are prompting investors to own gold, and this sentiment is now being shared by the world.

It wouldn't surprise me if any minute there wasn't a major gold purchase announced, spiking the gold price and causing all kinds of commotion.

Slow and steady wins the race.Adding a small amount of gold or silver to diversify your savings and retirement accounts may be your best strategy to prepare for the day you get your gold watch.

As always visit LearCapital.com for real time precious metals prices, low online prices for bullion and for breaking gold news.