A retrace to the 700s is possible as crazy as it sounds. I wouldn't be buying now, there is a definite downtrend. I remember a trader once telling me there is good money to be made short gold now and then. That hasn't been true for a long time, which I think that is about to change. Not so much that gold is done, but there is a bubble of confidence that everything will be OK. That Benanke will be able to land the plane, that there won't be bad inflation. All wrong, IMO, but being wrong never stopped the markets. Regardless, inflation is a long ways away.
I'll start dipping my toes in small under 1050. I'd love to see 700 again. Fat chance that it happens however! I won't hold my breath. Unless oil is at 40 and median price of a home is back down to $70,000. I wouldn't hold my breath on that however.
I agree. Silver is a much better value right now and will be in greater demand as a currency of exchange when the average Joe on the street finally figures out what is going on and loses faith in US currency. The average person certainly will not be able to afford gold, even if they can find it to buy.
its all a fantasy ... everything wake me up when its over www.youtube.com/watch?v=X-ZULpr8m5o&feature=related