There are just too many gold bears out there right now. They need to get squeezed before we see the ultimate top.
You say $400 to $500 Gold I was thinking $300 by this spring with $65 to $75 oil. Gold is doing what oil did at $140: purely speculators getting you in for your money.
Those who think $500-$600 gold is coming, the question is, what is the catalyst?Commodities dropped 50%, stocks crashed 50%, the dollar soared, hedge funds are going bust left and right and yet the frigging thing keeps holding up. Deflation is not necessarily bad because the evidence is mixed, it went down in japan during their deflation but it went up in the 30's as governments devalued their currencies to gold, so gold holders were happy(when they were allowed to have it) Prior deflations were good for gold since the world was in the gold standard and that deflation necessarly meant gold was going up(gold and cash were essentialy the same thing)
Daal: Not sure if Public gold holders were happy about the Price of Gold during the 1930's Remember the Gold Confiscation Act of 1933. No one except the Government could possess GOLD. Public holders were forced to redeem all Gold or face a $10,000 fine a PRISON. I would hate to think that this is coming. The rumor is a World or Global Currency with restrictions on gold bullion ownership???
Well, talknet, that was a really lousy trade, huh? The answer is the Fed can print much, much faster than gold can be found...
Thrifty, It's not just the Fed - JPY has an interest rate of less than 0.50% (and an imploding economy); UK economy is tanking and so is the UK base interest rate; even the ECB has a base interest rate of 2.00%. Gold is simply the currency of choice above all others.