Gold Prices: A Familiar Trend

Here is a 35-year chart of gold prices. Based on what you see, would you want to jump onto the gold bandwagon?

I am bearish on gold over $1,000 per ounce and this chart is a good reason to at least be careful with the current precious metal of choice. The latest trend looks very familiar…

Comments

[a3a61680:]

Higher highs. Higher lows. Solid support in $900. Your article is weak.

Oct 07 11:46 AM

[cbinvest:]

When analyzing this precious metal, since it inherently has been related to both the dollar and politics, the analysis is wrong. I look for gold to go to $1250+ due to current economy and the consistently incorrect move by the current administration who is too intent on change vs. improvement.

Oct 07 11:58 AM

[Screwloose:]

Try the same chart inflation-adjusted.......

Oct 07 12:01 PM

[User 400609:]

you see what you see, but you donot seem to analyse much...

given so many good articles on gold all over this is just a silly joke...kicked out by GS no doubt!

Oct 07 12:45 PM

[Economic Ph...:]

Ahhh... the illusion of nominal prices.

Oct 07 12:58 PM

[Mad Hedge F...:]

bse Of course you knew it was going to happen like this. After churning around just below the old high, and sucking in as many profit takers and short sellers as possible, gold blasted through to a new high for the year of $1,038. Never mind that the triggering event is complete balderdash, a story in Britain’s Independent newspaper asserting that the Middle East is holding secret global talks to price crude in the yellow metal or other currencies (click here ). It didn’t hurt that Australia cut its interest rates by 0.25%, the first G-20 country to do so. There probably isn’t enough gold in the world to finance more than a few weeks of global oil production. Total gold holdings would only fill two Olympic sized swimming pools. But never let the truth get in the way of a good trade. The confirming moves couldn’t be more ubiquitous, with the Canadian, New Zealand, and Australian dollars all up big, commodities strong, and silver also going ballistic. Regular readers will all recognize these as old friends of mine, core longs that I have been strongly recommending since the beginning of the year. I have been trying to get investors into gold since it was at $800. If you aren’t in gold by now, I can only tear my own clothes and flagellate myself for my abject failure to convince you of gold’s merits. US government debt is exploding, and with foreigners holding a large part of our paper, the only way to get out of this mess is to devalue the dollar. It’s like Obama invited China’s president Hu Jintao to dinner at an expensive Upper East Side restaurant, fakes a sudden case of food poisoning, leaving him with a big fat bill. Next stop $1,200, then $1,500, then the old inflation adjusted high of $2,400. If you want me to help you get set up to trade futures in any of this stuff, please email me at madhedgefundtrader@yah... If you want to know where to buy physical gold and silver in size, or coins with the tightest spreads over spot, check with the experts at millenniummetals.net by clicking here.

Oct 07 01:41 PM

[Gardener:]

But no short position disclosed.

Oct 07 02:52 PM

[10 Sigma:]

All the smartest people are always insisting that the upward trends will have no end. Just before "The Great Unwinding", analysts were irritated at the suggestion that liquidity would dry up. Just before the dot com bust, Harvard men were explaining how multiples of 100 didn’t capture the true value of the firm, or that “eyeballs” were more important than products. Gold at $2,000 is the new illusion fueled by moronic rationalizations of "inflation adjustment". Has your paycheck been adjusted for inflation? I recommend DZZ. Gold at $600 per ounce by January 2010.

Oct 07 05:19 PM

[Vuke:]

Chad:

This is not a 35 year chart of the price of gold. It's a 35 year chart of the consequences of the suppression of gold in support of a manipulated fiat system.

The last few years reflect the world's dawning realization that fiat can be fraudulent. How fraudulent will determine the ultimate price of gold.

Oct 08 08:41 AM

[LR European:]

Your chart shows that gold corrected sharply after its accelerated peak in the early 80s and then proceeded to form an extended base from which it has finally broken up decisively.

Why do you not think that is a screaming buy signal?

Before worrying about the price action wait for an acceleration such as shown on the chart from the late 70s - a rate of change which is obviously unsustainable. We are not there yet on the basis of the chart you show.

Oct 08 02:37 PM