waldipup

The End of Gold, Part Two

"Thank you all for your comments"

????

Does that include the one asking you to supersize his fries?

If investors dont buy gold , what are their alternatives?

More t-bonds? real estate? GE ?

Gold buying thrives in an environment of uncertainty.

Heard all the stories of people not even willing to put their money in banks?

That's evidence of uncertainty.

Regardless of the inflation / deflation argument -

Eventually , unavoidable inflation WILL propel gold up to new extremes -

But for now , while still in the "pump-priming" stage ,

That which will cause gold to rise to reasonably higher levels is the uncertainty and fear -


Mainstream investors en masse putting , for the first time , "just a little bit" of their portfolio into gold ,

Coupled with the meager supply available to accomodate that huge cumulative increase in investment demand .

It is true that this article is timely -

Gold is banging against its last downtrendline from last summer's alltime high right now ,

And if it doesn't break above that line quickly, then shorting /long selling at this trendline , coupled with investors waiting on the sidelines for a breakout before entering (wise move) could result in a test of gold's uptrending channel's lower channel line.

If that occurs , THAT is the ultimate entry point (or if it breaks out to the upside now ).

Many tech factors culminate in the mid 800's , so any consideration of gold dropping substantially would be premature unless that area is breached to the downside.