Posted on 12/06/2005 6:55:58 PM PST by Sonny M
"By the time you read about it in the paper it's peaked"
For what it's worth, I think the present up leg has a few more weeks to go, and gold will probably reach around 530 before it corrects. It's almost certain to correct around the beginning of next year. But nothing is completely certain, or we'd all be rich.
I put in a mild plug for gold here a couple of weeks ago, when it looked like another upleg was starting, but it's not quite as good an opportunity now. Still, I think I'm not going to lighten up for another three or four weeks, maybe.
The MSM is only just beginning to mention the subject. There have only been a very few articles, even though passing 500 was a significant milestone. You'll know it's time to sell completely when CNN is urging you to buy.
Gold keeps away the bogeyman.
'Cuz it's shiny!
LOL! And when will we start seeing posts about the "gold bubble" bursting?
Joe Kennedy is said to have sold all of his stock just before the depression after getting some stock tips from a shoe shine...
I love guys like Gartman and Bernstein, and throw in Kudlow and Luskin. They haven't recommended gold all the way up from $250 in 2001, and now they would buy it at $460. Who wouldn't! But if it goes straight up to $600, where will they be - still out of the market.
It's been 64 days since
Don Luskin, on Kudlow's TV show,
said that gold's up trend is over
and the price of gold will drop
$30-40 from $464.20!
Here are predictions you can take to the bank:
The central banks and the bullion banks are short 12,000 to 16,000 tonnes of gold, and the price of gold will equal the price of the Dow Jones Industyrial Average.
Mover Mike http://www.movermike.com
Right about the time that our paper currency begins to stabilize. I wouldn't advise holding your breath.
We are probably still fairly near the start of the second upwave. After a major bear that lasted for decades, the gold market started back up around 2000/2001 (double bottom). Then it corrected for around 18 months. Seemingly the second major upwave started around last August. It should last for another couple of years, with some large and violent corrections. Then a third upwave, which will correspond to the eruption that reached 800 the last time around. That will be when you can start talking about bubbles.
I remember that when gold was around 800, every news radio and TV reporter gave out the daily closing prices on gold, right next to the Dow and the weather report. And gold and silver jewelery buying outlets opened next to every McDonald's. When they start doing that again, you'll know the bubble is pretty ripe.
Gold is NOT an investment, not for gain, anyway. Gold is to store value while the markets all get unpredictible from the inflation that is represented by the rise in the nominal price of gold. Only some speculators make money "investing" in gold metal by playing the very short term dips and blips in the price of gold. Those who hold gold lose a percent or two in transaction costs but the main body of value does not rise or decline. Investing in gold stocks can be lucrative if bought before the gold price starts making headlines which sends folks to gold stocks and runs the prices up more than the price of the metal warrants.
For most things that is true, but not for gold. It takes a fairly long time in the normal course of events for a gold price trend to reverse. It takes a massive change in government policy, in this case a solid commitment to a stable dollar and no more "devaluation." The price of gold in dollars is the screaming telltale of dollar inflation. It mirrors the rate of the FED's creation of dollars beyond the market's ability to absorb those dollars at a steady price level. Bush is committed to strong inflation for the forseeable future because it reduces the real national debt because the debt is denominated in dollars. It is paid back by a certain number of dollars. The dollars can be any value so long as they are officially termed "dollars." The inflation makes those dollars worth less and the debt is repaid with those smaller dollars, i.e. with less value. Fewer assets are needed to repay the same number of dollars.
All governments have historically resorted to outright repudiation or inflation(in truth, partial repudiation) when they have large debts. A country with a weak economy explicitly repudiates. It cannot inflate out of debt because the debt is denominated in a different currency. A major economy government inflates.
For the truth about what is going on in the Silver and Gold markets go to the experts on the subject. They have been calling the market exactly as it has been for the last eight years.
http://www.lemetropolecafe.com
Gold to the moon baby!!!! Yeeeeehaaaaawwwwww!!!!!
GATA be in it to win it.
I've reread that prediction three times, and I still don't understand what you're trying to say. I wasn't aware that the DJIA had a price.
Which means either gold goes up or the dow goes down. What's the price of the dow mean? I share of each stock in the average? What's that worth now? How do you figure in splits. Gold can't split.
Well the DJ average is a price. It's at 10,800 today. Maybe that's the price he has in mind. Wow! That would be a major shift. People would have to stop wearing wedding rings, it would be too dangerous.
The DJIA is not a "price." It is simply a number, a weighted average, meaningless in its own right.
The DJIA is at 10,856, it is not at $10,856.
Wow! That would be a major shift. People would have to stop wearing wedding rings, it would be too dangerous.
Huh? You mean the price of gold is going to $10,000 an ounce? Don't hold your breath.
Don't say that.
My ex, used to use that as her catch phrase.
Also why I stopped buying her jewlery.
Your to kind to Joe Kennedy.
What he did, was much worse.
And now illegal, If all he did was insider trading, things would be better.
I mis-wrote when I wrote "the price of gold will equal the price of the Dow Jones Industyrial Average." That should be the price of gold will equal the level of the DJIA, meaning there will be a one to one correlation of the two. That could mean POG is $5000 and the DJIA is 5000. I wouldn't think gold and the DJIA would both be 10,800. Gold at $10,800 shouldn't be too good for the DJIAs.
Mover Mike http://www,movermike.com
What is the price of silver right now?
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