Gold is due for one more down leg. This will happen due to a combination of an oil correction and the fed not cutting rates next week. My target price...low 830's. What will follow is a long (few months) consolidation period.
I am selling my juniors on the next mini bounce, before next week, will take the loss. Will keep my AUY, SA, and MFN and write covered calls on them monthly to continue bringing in income.
I really think the writing is on the wall here for us in the short to intermediate term.
Reality is not ruling the markets, and until something is done to pull inflation hedge money and speculation out of oil, and back into gold, gold will languish.
I could be wrong...and I hope I am. One way I could be is if they bring the futures trading in oil under control with very tight margin restrictions....which should drive inflation money back into the currency of last resort.
I dont buy Sinclair's argument that everyone in America is going to start thinking of gold as money anytime soon. It might happen, but not this year. Not a chance. The public is just now starting to get a taste of what is to come and it will have to get very uncomfortable to pull the lazy masses from their couches.
I must say that I am very happy to be able to speak frankly here without getting lynched. On GIM, I would already have been.
4 comments:
You forgot 'never'....
Here is my predictions....for what it is worth.
Gold is due for one more down leg. This will happen due to a combination of an oil correction and the fed not cutting rates next week. My target price...low 830's. What will follow is a long (few months) consolidation period.
I am selling my juniors on the next mini bounce, before next week, will take the loss. Will keep my AUY, SA, and MFN and write covered calls on them monthly to continue bringing in income.
I really think the writing is on the wall here for us in the short to intermediate term.
Reality is not ruling the markets, and until something is done to pull inflation hedge money and speculation out of oil, and back into gold, gold will languish.
I could be wrong...and I hope I am. One way I could be is if they bring the futures trading in oil under control with very tight margin restrictions....which should drive inflation money back into the currency of last resort.
I dont buy Sinclair's argument that everyone in America is going to start thinking of gold as money anytime soon. It might happen, but not this year. Not a chance. The public is just now starting to get a taste of what is to come and it will have to get very uncomfortable to pull the lazy masses from their couches.
I must say that I am very happy to be able to speak frankly here without getting lynched. On GIM, I would already have been.
John
$1000! I'll be ecstatic to get back to 960. Everything after that will be gravy.
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