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-- Posted Tuesday, 15 June 2010 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Tuesday, June 15, 2010 “Phenomenally accurate forecasts” Investors enamored of gold now have two supposed contrary indicators to worry about: the New York Times, which did a front-page feature over the weekend on bullion’s growing popularity as an asset class; and CNBC, where a Deutsche Bank analysts on Friday predicted a $75 surge to $1300 an ounce over the next few days. Although we aren’t entirely comfortable ourselves with recommendations aired on CNBC, especially by Cramer, an ostensible endorsement of gold from the Grey Lady is another story. Our respect for the Times’ business section goes back to the summer of 1976, when they were the first big newspaper to notice that a small company called Resorts International had opened an office in Atlantic City. Resorts’ common shares were selling for about $2 at the time, but – gold bugs take note – after the Times story ran in August, RTA class ‘B’ shares began a steady ascent over the next two years to around $160 (if memory serves).
So don’t think that just because gold investments have gotten a front-page treatment in the New York Times that that will be the kiss of death for precious metals. The Times, after all, is not merely some upscale cousin of the mentally retarded Newsweek, and for every half-competent, politically warped bloviator like Paul Krugman who writes for the Times, there is a top-flight reporter elsewhere in the newsroom like Floyd Norris, who gets his facts straight and covers the issues of the day with the kind of balance and understanding that can truly help readers get a handle on the news. Gold Will Take No Prisoners Contrary indicators aside, our own technical runes suggest that gold’s long-term bull market remains healthy and robust but that deep-pocketed buyers are in no particular hurry to push quotes up to new levels. Under the circumstances, we’d be surprised if the CNBC guests prediction of $1300 this week pans out. But if he returns to the airwaves in October – which is when we expect gold bulls to stop taking prisoners -- he’ll probably have more luck. In the meantime, we attribute gold’s reluctant posturing of late to Europe’s newfound austerity. Whether or not Europe can handle the pain of fiscal deflation is an open question. For the present, however, no one should doubt that the countries that plan to cut back – at this time, Britain, Germany and France – fully understand that a printing-press solution will only make the eventual day of reckoning more painful, if not to say catastrophic. Whether or not you believe they will stay the course, this is not the time to bet against the euro – or on runaway inflation. *** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2010, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Tuesday, 15 June 2010 | Digg This Article | Source: GoldSeek.com
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