Friday, September 24, 2010

How High Could Gold Go, The Next Few Months?

(snippet)
Note that there were always small pullbacks in the time periods I looked at; it was never a straight line. So the recent minor drawdown was typical of what occurred during these surges. Also, there were always corrections or at least periods of consolidation after the surge and before the next big upswing.
Regardless of what gold does over the next few months, I think 20%+ surges will continue throughout this bull market, with the occasional 30% punch. And a doubling of the gold price in a matter of months is also likely in our future, a sure sign of the Mania phase. Gold surged 128.5% from October 8, 1979, to January 21, 1980. A similar vault today would have the price jumping from, say, $2,400, to $5,484 in less than four months. Yes, I think that's entirely possible and perhaps probable.
How high will gold ultimately go? I look at it this way. The sovereign debt crisis in Europe isn't over. The sovereign debt crisis in the U.S. hasn't started. We will almost certainly see more quantitative easing (i.e., money printing). We have artificially low interest rates. The U.S. dollar is basically at the same level it was two years ago. We have no official inflation and certainly no big inflation. Less than 5% of U.S. citizens own any form of gold. Central banks are widely expected to be net buyers of gold again this year. Investment demand for gold is still only 32% of all uses of gold, a far cry from the 54% level reached in 1979. I could go on, but you get the idea.
The only way you can benefit from these surges is to be long gold. If you haven't been a part of one, I guarantee you it's a lot of fun. Gold is more important than that, of course; it's your personal safe-haven asset. Buy on pullbacks, slowly increasing your holdings so that what you own makes a difference in your portfolio, both for asset protection and profit potential.
And then, hang on.
More Here

11 comments:

  1. the value of gold is the cost of digging it out of the ground ,to processs it it and to circulate it in exchange for other value forms like paper dollars as equal exhange of value.
    Its replacement value,its price.

    In the real world ,That is only a few hundred dollars an ounce.

    Either by cheap hand labor production in the third world or in competition with industrial production with high infrastucture costs .

    It has an average cost of production, that starts or is based on the level of necessary labor time to get a subsistance income in the third world.

    All the rest, a price above that ,is get rich from speculative demand ,a bubble .
    In the world of speculation and dreamers ,the price of gold can be maipulated up or down ,but only down to the level of its cost of production.
    The current "price of gold" is actualy way above its production costs.

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  2. DAMNIT!! Stop talking about GOLD.I can't afford any.

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  3. 6:12 BUY SILVER!! YOU CAN AFFORD THAT!

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  4. hi ho silver..to infinity and beyond.Take that JP and the like ..you shorting scumbags.Let your balls be squeezed to infinity

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  5. 2:55 still doesn't get it! THE BUBBLE IS IN THE DOLLAR! Nobody wants it.

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  6. Because of this great site, I have been investing in physical gold for the last three years. I now have an impressive pile, ready for any eventuality. When the world collapses, my gold will buy me security, sluts, food, and booze. I don't want anything more than that. I plan to live simply.

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  7. cash is king, gold is for losers, YOU CANT EAT GOLD STUPID,.IF YOU ARE HUNGREYU WILL YOU EAT THE GOLED, NO

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  8. THE US GOVT IS THE MOST CORRUPT GOVT ON THE FACE OF THE EARTH

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  9. 7:17: don't forget china and Russia and other corrupt country.

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  10. The trutt and notin but the trutt.September 27, 2010 at 9:09 PM

    7.16 boy your either uniformed stupid or both.Me thinks both.NO you cant eat gold but you can use it as a means to buy food when paper money takes the inevitable crap.Get educated then join in on the conversation you moron.

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  11. 7.16 yep cash is king alright.love a piece of paper with an intrinsic value of zero and depreciates everyday.

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