Home » Economy, Gold, Headline

Gold Run Over?

25 August 2011 44 Comments

The price of gold corrected 10% over the last few days. Here are the reasons why the run is not over.

1. First, a correction like we just got is actually very healthy. I would be more concerned if we didn’t have a correction and continued going up higher and higher. Corrections are needed to shake out weak hands and leverage and help to create a sustained bull run over longer than mere days and weeks.

2. The fundamentals that have supported this run are firmly in place. In fact, they are more apparent now than they were a year ago when people actually thought the economy is rebounding. Nowadays, people essentially know that the economy isn’t rebounding sufficiently and more people think it might be sliding back into recession. The government response to the weak economy will always be to debase the currency.

3. Uncertainty is still extremely high. Recently, the focus has been on Europe. There are still many more waves of uncertainty to hit Europe until the current crisis comes to a climax. We haven’t seen the end of the problems.

Interestingly, tomorrow (Friday) is Ben Bernanke’s Jackson Hole speech, and he’ll undoubtedly move the markets, since everything hinges on the magic words of our fearless Fed chief now. What a market, right?

I tend to think Bernanke won’t announce any further easing at this point and the market will fall a good bit since it has seemed to be anticipating more QE.

We’ll see. This correction might be a good time to load up your gold position.

44 Comments »

  • Financial Uproar said:

    The CBOE just announced a hike on margin requirements for gold. That can't be good for the precious medal.

    I don't have a nickel of my portfolio in gold. It looks like quite the bubble. Of course, our differing opinions is what makes a market. It should be interesting, for sure.

  • fxgeorges said:

    i know its time to sell because i picked up some grass over the weekend and my dealer started talking about 2000$ an ounce gold. I'm not even kidding and this guy's never made an investment in his life besides the grass he sells. I was bearish before my little chat with him but he just solidified my stance.

  • Bowmanave said:

    Ap has been wrong and continues to preach but I do agree with his assesment that if the market goes down hard it will take metals with it. But thats only if the dollar holds up.. If the dollar goes down with the markets imo metals will soar and will end up as the biggest wealth transfer in history.. Its all preception. The perception that dollar is king is eroding fast. I can live with a dollar based on value issued by the gov't intrest free. The issue of fiat by private bankers has lead to the death of millions. Its time to grow up as a human race and ditch the bankers.

  • WPC Flooring said:

    This is exactly what I was already doing. But when I came across the realization that it isn't set correctly on boot I thought I would ask about a different way.

  • Ron Stevens said:

    I think this is a very important time to start thinking whether to invest or to spend, gold right now is around $1600 and the dollar continues to fall flat and it will continues to lose all it's value very soon, i think this is a time to start doing some research a look for the best way to save our hard earnings.

  • Max Bloomington said:

    Considering the situation that Europe is in now and how the U.S. economy is being affected by it, it's pretty obvious that gold and silver are the best investments anyone can make right now. While the value of the dollar is decreasing the value of gold increases. By investing in gold and silver, we are investing in actual commodities that have value and at this rate increase in its values and due to their rarity now. Unlike paper money which is only being driven by people's perceptions of its value and is also a very recent commodity. However, gold and silver were used as the standards for a longer period of time and people still trust in them and that's why they're not only the better choice in terms of investment but the safer choice.

  • Chanel Schmuck sales said:

    I've finally found what I needed the most! Thanks God for your site!

  • Internet Frauds said:

    I have bookmarked it and I am looking forward to reading new articles. Keep up the good work…

  • Support Hose said:

    Nope, I don't think it is over yet. I read today in the news that gold is at an all time high because of the demand in China…yikes!
    mechanical engineering internships houston

  • youtube converter said:

    Gold may be the value thing. People may use it investment. Nevertheless, the value isn't usually large.

  • handyortung said:

    In the theory, the gold will not running if we chase them. Maybe they are any mistakes while the process is being done.
    handyortung

  • webmaster forum said:

    Having investment can be done in gold. The gold has high value. Therefore, it can be kept to save money.

  • Cedar park said:

    Gold resists attacks by individual acids, but it can be dissolved by the aqua regia (nitro-hydrochloric acid), so named because it dissolves gold. Gold also dissolves in alkaline solutions of cyanide, which have been used in mining. Gold dissolves in mercury, forming amalgam alloys. Gold is insoluble in nitric acid, which dissolves silver and base metals, a property that has long been used to confirm the presence of gold in items, giving rise to the term the acid test.

  • JimmyRuth said:

    We have to chase them for earning more. if we just staying at home, then we will not get any of them.
    Fishing Lodges Alaska

  • Korcula Chorwacja said:

    If they don't take a good control for it, then they can losing their money in it. Checking is important if you are in the project.
    Korcula Chorwacja

  • desktop said:

    Invest by buying gold is a wise choice. I think by investing in gold, we can sell it at any time by following the jeweler market prices rather than selling price, and I think it is quite profitable.

  • Warren Buffett said:

    The manilla rings of West Africa were one of the currencies used from the 15th century onwards to buy and sell slaves. African currency is still notable for its variety, and in many places various forms of barter still apply.

  • Markham beauty said:

    Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive solid chemical elements. The metal therefore occurs often in free elemental (native) form, as nuggets or grains in rocks, in veins and in alluvial deposits. Less commonly, it occurs in minerals as gold compounds, usually with tellurium.

  • Warren Buffett said:

    let i share my view to you:My favorite Warren Buffett quote is this: It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

  • Howard Marks said:

    Fiat money is money that derives its value from government regulation or law. The term derives from the Latin fiat, meaning "let it be done" or "it shall be [money]", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.

  • insider selling said:

    The Benefits of a Hedge Fund are funds Allows access to a broader spectrum of
    leading hedge funds that may otherwise be unavailable due to high minimum
    investment requirements

  • insider selling said:

    Academic research proves hedge funds have higher returns and lower overall

    risk than traditional investment funds.

  • insider selling said:

    Hedge funds are great vehicles for their managers to enrich themselves while leaving little alpha for their investors. Of course there are some exceptions but most hedge funds lost money last year.

  • Julian Robertson said:

    Hedge funds benefit by heavily weighting hedge fund managers’ remuneration towards performance incentives, thus attracting the best brains in the investment business. In addition, hedge fund managers usually have their own money invested in their fund.

  • Zenith said:

    Many companies struggle to extract gold from my country. Unfortunately for them yet this is not possible. Plattformlift

  • one piece hancock said:

    Along with her sisters, on her back is the slave mark of the Tenryuubito, something that she was so intent on keeping secret and was willing to petrify anyone (other than her sisters and Elder Nyon) who saw it. In order to make sure it was never seen, she and her sisters concocted a lie that what was really on the sisters' backs were pairs of Gorgon eyes which would petrify anyone who sets eyes on them. Hancock uses this "curse" as an excuse for her and her sisters' Devil Fruit abilities.

  • Jerry said:

    This is nice post which I was awaiting for such an article and I have gained some useful information from this site. Thanks for sharing this information.I just wanted to leave a comment as a token of appreciation.
    writing a narrative essay | writing autobiographical essay | writing essay conclusion

  • auto said:

    This is such a great resource that you are providing and you give it away for free. I enjoy seeing websites that understand the value of providing a prime resource for free. I truly loved reading your post. Thanks,

  • car insurance said:

    This really is this type of great resource that you’re supplying Why Is visit how to pass and also you provide away free of charge. I really like seeing websites that understand the need for supplying an excellent resource free of charge. Thank you for this excellent resource !

  • leonardokolina said:

    Gandrīz visi lielie uzņēmumi pārdod dāvanu kartes. Tas sekmē iepirkšanās, kā arī dāvanu kartes ļauj to saņēmējus iegādāties preces viņi patiešām vēlas.
    accountants in sydney

  • IOIOM said:

    Today Bernal worn a unique style evening dress on the party, and it is really very charming. Open back is very sexy and match with some pearls. Bernal said it was customize at IOIOM, and there are many cheap dresses at there, such as wedding dresses, prom dresses.

  • custom usb drives said:

    There are a lot of people are replacing someone because it is considered more reasonable to assume that position if compared with many other rival candidatescustom usb drives

  • D3 Gold Game said:

    Friends, do you want to buy Diablo 3 gold at low price? You shall choose this D3 Gold Game. The site offers fast delivery, customer service 24 hours online and cheap Diablo 3 gold. Friends, you can place a trial order from this website. I believe that you will fall in love with this website.

  • EvanBaxter said:

    Etsi tapoja, joilla yrityksesi voi aiempaa myönteisemmin lapsia. Perustamisesta pieni leikkipaikka sillä idea voi kuulostaa kallista, mutta kasvaa tuloja saat tulee paljon enemmän kuin tarpeeksi kattamaan nämä kustannukset.
    baltimore website design

  • divorce florida said:

    Viele der Mitarbeiter sind durch höhere Position innerhalb des Unternehmens motiviert. Geben größere Verantwortung ist oft eine große Motivation für sie.
    divorce florida

  • valuations wa said:

    Ez badakizu ziur nola liburuxka bat sortzeko lehen urratsak emateko, lehenik eta behin zer nahi duzun material sustapen mota erabakitzea da. Hartu itxura ona eman eta aurkituko duzu zure gogoko liburuxka, kopiatu eta gorde.
    valuations wa

  • Meditation said:

    Vienmēr jābūt gatavam izmantot situāciju, lai piesaistītu vairāk uzņēmumu. Tas nenozīmē, ka jums vajadzētu vienmēr aizēnot pārējos, bet ir vienmēr gatavs, ja ir iespēja pārdot produktu.
    Meditation

  • AriadneDuff said:

    We should be looking for a lot of money in order to help many people however, it does not just mean the treasure money. You can save a lot of wealth in other forms as well, one of them gold.
    Locksmith sunshine

  • petergale said:

    Shikoni realisht se çfarë ju mund të arrijë brenda një jave, të vënë mënjanë disa të holla dhe të marrë parasysh mundësitë tuaja të marketingut. A nuk merrni theksoi shumë do të jetë shuma e parave që është në duart tuaja, të përqëndrohet kohën tuaj dhe energji për të vendosur se çfarë të bëjë me të holla.
    sql server deadlock

  • GeryBudd said:

    There are many types of profits and wealth can we collect if we are able to manage your finances well and correctly so treasure that we have will not run out quickly.iphone imei unlock

  • glock parts said:

    Y cam nesaf yw dechrau siarad gydag unrhyw un, a all fod yn gwsmeriaid posibl. Talu rhywun i fynd o ddrws i ddrws neu codwch y ffôn a ffoniwch eich darpar gwsmeriaid.
    glock parts

  • Click here said:

    It is important to make sure you follow the price gold. It is a great investment to make with the economy the way it is.

  • Canada payday loans said:

    Absolutely I strongly Agree with you

  • Canada payday loan said:

    Thank a lot for the tips of becoming a more unique business! Yes, I think that it’s really important now days to provide readers with original and practical content, new website design and so on… If you have some high-quality ideas to write, you will always get companies to your posts