I wouldn't dismiss the possibility either. The decreasing gold price is driven primarily by GLD selling (leading to sales of physical gold) and the initial frenzy of buying in China has subsided.
gold 3x from july 08 to aug 11. gold uo 6x from year 2000 all the people like jim rogers who took delivery are idiots inyour mind. 12 straight up years. gold is for holding not trading.
Gold is more a hedge that should probably never exceed 20% of your holdings for any reason. The spike since july 08 was associated with the fear trade held by those who believe the US is heading into a Depression, and that QE was merely delaying that inevitability. So, if this theory doesn't hold water, the july 08 level may be revisited. And, furthermore, Gold does tend to cycle up or down for many years, so it is not outrageous to think it could revisit year 2000 levels if the world economy improves in 2015. I'm not looking in hindsight, I posted in 2011 that I thought Gold looked toppy and may be somewhat of a bubble. Of course, I am far more optimistic about the world economy then many on here. I would never presume to have known exactly what Gold was going to do in 2011, because shorting strong markets is a fools game. Its no longer a strong market, in fact, it was obviously in a down trend at much higher levels, and most gold mining stocks crashed in value long before now.
====================== Some great points Z Dr g; but i like mr Gartmans counter-trend comments-however going counter trend makes better news than profits. LOL Nothing in this post is disrespectful to mr Gartman; likable trader
But do the gold banks want it to go lower (Source: http://www.cftc.gov/MarketReports/BankParticipationReports/index.htm)
And... Even if it gold goes down to 800 It does not change the simple fact That its biggest irrational haters Are idiots
Anyone notice gold closed at a recent high yesterday, after a huge upday, as forseen by the PriceDrivers�