Sakata

Eight Signs Gold Is Headed for a Correction

I just reread my post. Don't you just wish there were a preview capability on this site? It is so hard to catch typos when typing in such a small box.

Eight Signs Gold Is Headed for a Correction

You make some good points wihich are difficult to argue with. However, if gold plummets to $700 as you predict then gold will only be worth about 30% of its high. Stock are already close to 50% of their high. Gold is still ahead. If gold drops 30% then gold stocks are likely to fall ever further so prudent investors should have stop loss orders on them. Anyone who bight in at the bottom last fall, as I did, is now looking at a healthy paper profit and it would be prudent to protect that.

However, in my opinion, that gold is not the best solution. I do hold some, in the form of physical, GTU and stocks. But I hold way more silver, in the form of physical, CEF and stocks. If financial Armageddon does arrive then I think I havea pretty good chance of being able to use my silver (in all denominastions from dimes to 100oz blocks) as currency. My gold I would just hang on to until it is all over with the expectation that in rea terms it would be worth as much in the future as it was when I bought it.

I kind of following Howard Ruff's philosophy. Nobody should be buying gold or silvere until all debt is paid of and one year's worth of supplies are set aside. After that buy some silver for emergencies. But then I see gold as the next choice and, even if it going to correct as you predict, it is a better choice than stocks right now. So, YES, gold is probably due for a correction and now may not be the time to buy it, but I certainly don't have any intention of selling what I have and unless you are a trader I don't thing the profit/loss prospects are enough to risk shorting it.

The End of Gold, Part Two

" I am confident that unless gold can crack the anti-bubble it seems to be in"

Perhaps you have not noticed that in just about every currency except the dollar gold is making new all time highs just about every day. And even demonminated in dollar it is seeing a significant rise. Where is the anti-bubble? Relative to just about everything else the gold appears to be doing exceptionally well.