Wednesday, August 24, 2011
Gold is Most Bullish Market
There is a big selloff in gold right now and it is getting closer to strong support at 1725-1740. I would be a voracious buyer into that price area if it gets there. Perhaps a COMEX margin raise would be the catalyst to do it. We are in the early to mid bubble phase of gold, which means lots more upside. Those people with 5000 targets are being ridiculous, but 2500 is very much in play by next year. Talks of bubbles are popping are way too premature. The current environment is perfect for gold, which is a weak economy with firm inflationary pressures and an easy Fed.
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7 comments:
Gold at 5000 isn't silly it is simple math, outstanding US money supply divided by ounces of gold... if anything by the time Ben is finished they are being conservative.
dollar will rise when the fed surprisingly allows free market economics next 2 years. they have no reason to qe anymore, banks are capitalized.
Gold and S&P are correlated. gold lags. Last 2 years, they have gone up together on QE. You gotta pick either they both go up or both go down. Can't have either or. If you bet S&P's entered a bear, then you can't be a gold bull and vice versa.
I think both gold and S&P will go up eventually. Only for very short term periods are they negatively correlated as it is currently. Of course, I am a dollar bear for the long term.
yes long term can be longer than several lifetimes but in between dollar rallies in bull subcycles to the grand supercycle bear wave
We might see gold 2500 but that will be about it. Dollar will be substantially higher-we are at a dollar bottom.
agree - we are or very close to the bottom in dollar.
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