Goldman Sees 2011 Gold Prices At $1,400

Goldman Sachs see 2011 Gold prices north of $1,400 – largely the argument was made on the basis of central banks becoming net buyers of gold, gold ETFs continuing to buy substantial volumes, and real estate prices continuing to be depressed. Taking a look at a 5 YEAR chart of gold, $1,400 is still a good stretch away.

In the announcement Goldman attributes the rise to a couple main areas – all of which are justified in and of themselves:

1- the dollar

2- central banks

3- declining production

4- inflation

5- deflation

6- global short-term interest rates

7- uncertainty and distrust in government

8- flight to safety