Don-100

Gold Is At a Critical Juncture

Don't forget that gold is typically seasonally weak during the summer. Here is a good analysis of this: www.zealllc.com/2008/g....

Historically gold has held its value, essentially neutralizing the affect of inflation. There are a number of factors that point to elevated inflation in the US. Many believe that the slowdown in the US (and then the world) economy will blunt these inflationary pressures. But if that's true, won't stocks be hurt by this slowdown? At current P/Es, equities don't appear attractive to me.

I exited my precious metal positions in mid-March of this year and am eagerly waiting to get back in. By design, I begin establishing a new position slowly and only after gold has proven to me that it is most likely beginning a new uptrend. The test that has worked in the past for this is (1) gold price being at or below its 200-day simple moving average and (2) gold price 50-day simple moving average beginning to slope upwards. Yes, I'll never buy at the bottom with this strategy. But, I rarely get faked into buying a blip that fizzles out. Good Luck!!!