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Four Major Developments Gold Investors Should Watch

Almost NOBODY thinks it's possible that gold can go down in value.

Hmmmmmm.

Almost nobody thought tech stocks could go down.
Almost nobody thought Oil would fall like a stone.
Almost nobody thought houses could depreciate wildly.
and
Who would have thought that tulip bulbs were worthless?

I'm just saying... good luck if you own it and be careful.
I'll be waiting to short it... eventually.

Four Major Developments Gold Investors Should Watch

It is a mania! That much I agree with.

I can turn on the radio and hear several different commercials trying to sell the public gold, and I see guys out on the street corner to holding up "buy gold" signs. Any gold post on this site attracts tons of bullish comments. It's a certain mania and they make dangerous investments.

Interesting-- the China story. They cant buy enough of our treasuries at rotten rates of return. Why cant China get enough low rent dollars despite bad mouthing the buck in public to run it down further? Hummm. Obviously they're expecting a RISE in the dollar and they want in cheaper, otherwise they're screwed.

If they thought they might get screwed on the dollar, wouldnt the government be hoarding gold instead of passing it out to the citizens?

It doesnt add up.

Unless some country decides to go back on the gold standard, gold really has no practical value except for jewelry or a trading vehicle.

Be careful with gold!

Look Who's Betting on Inflation

I guess I'm looking at the wrong stuff. Everywhere I look, people are expecting inflation, and even hyper inflation. I dont think the deflation is done because banks are done imploding! In other words, I think you're still early.

Transitioning from Bonds to Gold

Yep, I'll trust the fundamentals well before I buy what squiggles and indicators are "saying". I've been trading 20 yrs that way and consistently make money... so I go with what works. As for the money printing... when the velocity of that money picks up, you have a point with commodities, gold, oil, food, etc. Till then, it's just a 50/50 trade. Statistics say there is just as much chance of the price of gold hitting your bottom red line as breaking thru the top one.

Transitioning from Bonds to Gold

Or... Better yet, nobody can predict the future based on lines on a charts and indicators. It's bogus science. Buy or sell based on fundamentals and set your stops correctly... that's how you trade well! There's just as much chance of it dropping to $640 from here as there is a run to $1000.

Coming Inflation To Boost Stocks, Gold

One thing I dont understand. If all the currencies of the world are being printed at the same rate as the dollar, then who is going to bid up the price of everything? I believe we are facing inflation, but to have inflation your currency needs to lose value against other currencies. In your article, you say that's going to be a small part of the devaluation. I think that's going to be the MAJOR part of the devaluation. The question is what currency will be strong. China perhaps. Time will tell.