Gold Continues to Languish!
Gold is still meandering around $640-$650. It is providing us with more buying opportunity before jumping ahead. When will it return to its upward climb? That is the heart of the question on most folks mind. Gold is definitely oversold at present, but I still believe the price is being manipulated. It is a wonder that this still seems to be true. However, once again, the market forces will begin to take over normal control. Hang in there for the long haul.
Central banks and governments prefer their FIAT currency and have a great fear of gold as a monetary metal. They will do almost anything to destroy confidence in gold among the populace.
It is absolutely amazing that an ounce of gold historically would buy about 20 barrels of oil, but now it buys only about 9 barrels. That is absurd! Do the math. Figure what the price of gold should be now to buy 20 barrels of gold. Isn't tht remarkable. The equilibrium will be re-established some time in the near future.
Also, the great imbalance in the economies of the world will be adjusted. At that time, the mask of the dollar will be removed and it will stand naked before the world. There will be a balancing of the books at some time. The reserve currency of the world cannot be backed by a bankrupt nation forever. A day of reckoning will come!
Meanwhile, we are seeing some good buying opportunities in the mining stocks. Notice that the prices of the GLD and CEF have not fallen nearly as much as the price of gold. Even the mining stocks have fared pretty well. However, there are bargains if one will but search and study the precious metal market.
By the way, I normally read the Stratfor Intelligence Reports. Check them out at www.stratfor.com. You can obtain a free subscription to some of their reports. The most recent one was on China's plan to counter U.S. Naval Power on the cheap. It is worth a read!
Best to each, Doug
Central banks and governments prefer their FIAT currency and have a great fear of gold as a monetary metal. They will do almost anything to destroy confidence in gold among the populace.
It is absolutely amazing that an ounce of gold historically would buy about 20 barrels of oil, but now it buys only about 9 barrels. That is absurd! Do the math. Figure what the price of gold should be now to buy 20 barrels of gold. Isn't tht remarkable. The equilibrium will be re-established some time in the near future.
Also, the great imbalance in the economies of the world will be adjusted. At that time, the mask of the dollar will be removed and it will stand naked before the world. There will be a balancing of the books at some time. The reserve currency of the world cannot be backed by a bankrupt nation forever. A day of reckoning will come!
Meanwhile, we are seeing some good buying opportunities in the mining stocks. Notice that the prices of the GLD and CEF have not fallen nearly as much as the price of gold. Even the mining stocks have fared pretty well. However, there are bargains if one will but search and study the precious metal market.
By the way, I normally read the Stratfor Intelligence Reports. Check them out at www.stratfor.com. You can obtain a free subscription to some of their reports. The most recent one was on China's plan to counter U.S. Naval Power on the cheap. It is worth a read!
Best to each, Doug
posted by Doug @ 4:07 PM
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