gold price has became a bubble as of late. it reminds me of the dot com bubble in 2000. All IB's were predicting that the nasdaq would reach 10k by the year end. and yet... just keep in mind that many people will lose lots of money with this bubble like in any other bubble.
Or perhaps it's like the seventies where goldstocks moved up 1000% to +10000% and more. Who knows right.
I should! And when I see signs that it has topped, I might do so. Not going to get in front of the Fed. Just because something is overpriced does not mean it won't stay overpriced.
You touch an important issue here. Have governments and central banks over the years gained more control over the markets making it harder to predict future trends based on the past or do you believe no one Goldman Sachs et al included can conquer the laws of fysics? It's a though call.
Goldman Sachs, Fed, it's all one in the same in this context. They continue to manipulate prices up because of whatever strategy they see they need to work. There's no way I can stand in front of that train, so I won't until I see some catalyst that forces a change. If I miss the absolute top, boo-hoo, but I won't be dragged along the underside of the bus in the interim. I'll just sit it out and make scalps in risk currencies/gold/silver until it's done. The one thing that is a cold hard fact is that they cannot manipulate this forever.
Log Chart of Dow TOTAL RETURN (dividends reinvested) priced in Gold ounces. How come the gold bugs never consider dividends? Is it because Gold doesn't pay any?
...continuing with the idea of actually trading the thing for a profit: 1 - The first stop would obviously be 1030, or maybe a little less. 2 - Good article on why it might be a good position trade: Gold and Bonds Can't Both Go Up Forever We shall see, but I'm very impressed with today's price action. Nice consolidation.
Good article, but here are his three points: This would suggest the equity market is correct. Based on fundamental data, valuation models, technical analysis, whatever you want, equities are bubblish and rather silly at these levels. Furthermore the author states "equities would not thrive if the economy were weaker than expected or if deflation were a threat". Oh yeah? Does the author take into account massive asset price manipulation in the attempt to reflate? What about the levels of equity bullishness? And gold itself? Is not everyone and their mom long gold right now? But the author refuses to use the same argument on gold saying the consensus is rarely right. What? Gold timers?