-- Posted Wednesday, 8 February 2006 | Digg This Article
Well, is gold ready for a major correction after this incredible rise?
This is a very interesting & worth while discussion because every since gold climbed above 400 & on its way to 550 plus a vast majority have been waiting for gold to peak & head back south. There was more excitement when the gold price climbed from 300 to 400 an ounce.
But when gold ascended past 400 a palpable fear descended on many as they expected any moment for gold to start plummeting down again. And after all, isn’t this what has occurred time & time again these past 25 years? Gold only climbs to these heights to briefly touch a peak & then very predictably it dramatically crashes to oblivion.
Bill Buckler, The Privateer, defines well the general overall investor sentiment & attitude of many.
“Yet judging by the talk we see on the internet concerning Gold, those that pay any attention to the metal seem obsessed in identifying and getting out of the way of the "next" correction if they are not musing over whether the metal is or is about to come to the TOP of its bull run.” http://www.the-privateer.com/gold6.html
And what else does gold veteran Bill Buckler have to tell us?
“If and when you do, remember that the trend is your friend and the trend is UP. As long as it remains up, you have nothing to worry about.” http://www.the-privateer.com/gold6.html
And while I do not deny that intermittent corrections are inevitable still the over all longer term trend is far higher still. But how many really believe this? Has gold really reached its zenith? Dr. Richard S. Appel below does a very good job of defining where gold is actually heading.
“The Next Major Stop for Gold, $875.” “Now that the important $500 mark appears to have been decidedly left in its wake, I now believe that technically, only $725 should offer any important resistance between today’s prices and gold’s1980 bull top. Of course other price levels should develop where the bears and profit-takers will enter the market and temporarily impede its advance. However, now that $500 to $515 has been resolutely overcome, I am confident that it is only a matter of time before the eternal metal posts a new, all-time high.” “It (gold) is signaling to all those individuals who are astute and open-minded enough to take notice, that a mass exodus from all of the major currencies has begun!” “The smart money is finally beginning to protect itself by buying gold!” http://www.kitco.com/ind/appel/feb032006.html
Any of you ever fall asleep in church? I know it probably never happens to you, but it happened to me last Sunday. I awoke feeling something thrust in my ribs. I opened my eyes and there below me thrust in my lap rested a golden plate over flowing with money. Really a very nice way to wake up.
And what about that housing boom that was predicted & destined to go on forever? Is the housing boom really over? Read the text below & form your own opinion.
“With the real estate market softening in many areas, more developers are trying to entice new-homebuyers with freebies, from swimming pools and backyard landscaping, to flat-screen TVs and media rooms.” “In December, 40% OF HOME BUILDERS SAID THEY WERE OFFERING SOME TYPE OF NON-PRICE INCENTIVE, up sharply from 28% in November 2004, according to the National Association of Home Builders.”
http://www.usatoday.com/money/perfi/housing/2006-02-06-real-estate-usat_x.htm
But getting back to gold why is it so very important whether you recognize we are in a long term higher trend for the gold price? If all the gold advocates are correct in that gold is moving toward a generational high that will last beyond this decade why is it important to recognize an investment that will continue to climb for many, many years?
Because our long time nemesis “inflation” is not dead we need to look for investments that will not only grow, but will actually outpace inflation over the coming years. Only gold related investments today have the capability to outpace inflation. And is inflation real? Consider the following info below.
“Are You Investing Enough For Retirement?” “How much will a dollar buy tomorrow?” “What Will These Items Cost In 10 Years?”
“Even if your investments never lose a cent, you can still lose the ability to buy the things you want -- the things that can make your retirement years comfortable and enjoyable -- unless your money actually grows.” “Now you know THE GOAL OF SUCCESSFUL LONG-TERM INVESTING ISN'T SIMPLY GROWTH -- IT'S INFLATION-BEATING GROWTH -- growth that will preserve and, hopefully, even enhance your buying power over the years.” http://retire.hartfordlife.com/preserve.html
And today only gold investments have the ability to beat inflation & to actually help your money to grow.
Now let’s consider again how far gold has yet to climb in this bull market. The following excerpt is from a recognized expert. Bernie Schaeffer’s work appears on CNN, The Nightly Business Report, Bloomberg Television, Fox News Channel, ABC's World News Now, The Wall Street Journal, The New York Times, BusinessWeek, Investor's Business Daily, and USA Today.
Bernie Schaeffer “…I think the gold skeptics are calling an end to the trend a bit too early.” “But what analysts often fail to mention is that gold is nowhere near uncharted territory.” “One would have thought that the $500-per-ounce headlines would have brought euphoria. But to the contrary...” http://www.schaeffersresearch.com/commentary/bernie_observations.aspx?click=home&cat=soc&page=bernie_observations&ID=15210
Anyway, our point here is that when you read these articles proclaiming that gold is in a bull market that has barely begun we are not just whistling Dixie. Gold is finally being recognized & respected now by the most respected financial experts on Wall Street.
Gold Letter is an Internet publication emailing reviews of gold & silver stocks all ready climbing higher.
Comments? Thanks for coming by & please do come back.
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David N. Vaughn
Gold Letter, Inc.
David4054@charter.net
February 10, 2006
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-- Posted Wednesday, 8 February 2006 | Digg This Article
