Investors are always bombarded with rapid successions of new price calls for gold and hardly anyone ever remembers or even cares if somebody gets it wrong.
In many professions, such a history of poor performance is grounds for immediate dismissal.
Yet, these talking heads remain gainfully employed, which makes you wonder who really has the cushiest job in the world.
Thankfully, the folks over at the Daily Reckoning recently did some leg-work and decided to put the track-record of some of these analysts under the microscope.
They aggregated the gold price forecasts from Bloomberg’s weekly analyst surveys since 2007.
What they found may surprise some of you…
Starting in 2007, you can see that analysts predicted bullion prices would sink to less than $600 by 2012…
Obviously, they weren’t even close.
In 2008, they expected 2013 prices to hover below $800… and again, unless something drastic happens, it doesn’t look like that will happen either.
The current price of bullion would have to decline by more than 50 percent in order to hit that mark.
And with each successive year’s forecast, it’s pretty much the same story – analysts showing optimism in the short-term before turning bearish further out.
The investors who chose to ignore these so-called “experts” over the last five years are likely sitting on a nice cash haul while others are kicking themselves for listening.
As for the median forecasts called during 2012, the consensus is that gold prices would fall to $1,500 by 2015.
Now whether or not it happens remains to be seen.
However, I’m willing to bet that it won’t happen.
If the above chart is any indication, estimates of future price levels have always ended up being much lower than what they actually reach.
And should history repeat itself once more, gold bulls could be in for an even bigger payout this time around.
Debt-ridden nations are still feverishly printing new money out of thin air to try and keep their economies going…
More and more people are turning to gold to insulate their wealth as a result of money losing its value.
Central Banks have also jumped onto the gold buying frenzy to hedge against currency devaluation, whereby taking more gold out of circulation…
For these reasons, the demand for gold has never been greater.
And keep in mind, finding new gold supplies to feed this demand isn’t getting any easier – just ask the mining industry.
The industry spent a record $8 billion on exploration last year, the number of new gold discoveries fell, according to Barrick Gold’s CEO Jamie Sokalsky.
With high demand and low supply, it will be hard for gold prices to fall as low as these analysts predict.
My advice is: don’t listen to the talking heads.
If I were to make a bet on gold, I’d rather look at the facts than through any of their tea leaves.
In the long run, I believe gold is heading higher… make your move now.
for Top Stock Millionaire