http://online.wsj.com/article/SB10001424052748704792104575264863069565780.html I found this article on the WSJ blog. I read the article briefly, but the most persuasive point about the article is the chart within. The price of gold looks strikingly similar to both the housing and nasdaq bubbles. I have been wavering back and forth on my own personal stance in regards to gold. This news article persuades me a little bit more into the long direction...
Crap, if he's calling gold to double, I should probably re-think my longs. Besides, I don't know if I can state the long case on the fact that the chart during a chosen "boom" looks the same for gold as it did for the Nasdaq or S+P homebuilder index. Gold is nothing like either.
Im not calling for gold to double in price, but the chart of ths WSJ blogger does make a persuasive argument as to why it could double from here. I dont have access to the gold futures price chart, but I do have access to the gld etf price chart. If you look at the all-data chart for the gld etf then you can draw a single arrow going at a 45 degree in the upwards direction. It doesnt look like its going down and, in fact, seems like it might be ready to escape the current range.
Hysteria for higher prices occurs at the "final" top (where we are now), not at the "expected" top. Give thought to the downside. :eek:
Also notable is gold's lagging in the first half of previous commodity bull markets last century to come out on top troughout the later stages with the changing of the business cycle.
Nice chart but note that gold can easily drop 25% from here and still track the Nasdaq bubble. Gold chart is showing that upside momo is fading fast and a double top is forming. I think we can see a quick selloff as deflation not inflation is what every other market other than gold is signaling.