I do think this current breakout is significant. It needed to blow through 1030, and it has. If that holds as support, we're in a new bullish phase, IMO. I disagree that this portends anything other than that the global recovery is taking hold. There will continue to be pressure on labor that will hold most prices down. Commodities will go up. Whether that translates to CPI inflation is not at all certain. You can't glibly go from "gold is up!" to "inflation is coming!" or to that we're all doomed or whatever. This is real life, not some fantasy computer game.
I became interested in gold at 600 in 2006, when the signs of dollar devaluation became a real consideration. Conditions have only continued to deteriorate since then. When those conditions change, I will exit. Signs are not there yet.
Funny we only hear about upside "expert" targets for Gold but where's the stop loss? Reminds me of the Dow 40,000 book from 1999. "Buy and hold forever". Oh wait, I forgot: No stop needed as Gold can't possibly ever go down. The new risk free asset
The risk with gold is it is a non productive asset that is dug out of the ground and melted into bullion bars. There is lots of gold on the sidelines that will continue to enter as prices increase and you will start to see mining companies producing more and more gold. So You are gonna see dilution similar to when companies issue shares. As long as the masses buy into the gold bubble just like they did with the housing bubble you will see a ramp up in price. But when the correction comes it will be very fast and furious just like when the housing bubble just went POP!
Sometime back about 2007 or so, John Embry of Sprott Mgmt. made the prediction that we would never see 600 gold again. That prediction will prove to be true. Too early to tell on the 1000 level. Anyone listening to Prechter on gold, good luck.
Gold is cheap ? Then what do you think about this chart ? http://www.telegraph.co.uk/finance/...be-a-poor-hedge-against-major-inflations.html