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Gold Bulls - "Clawing the Sky" as prices fall

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Try telling me something that the whole market doesnt know!

 

http://www.energybulletin.net/node/50923

 

Long article and quite complex but makes the case, that all the downturns since 1970 are due to preceding oil price volatility though nearly all have been generally ascribed to other causes.

 

1987 crash is seen as a clincher - oil price volatity (due to OPEC members in conflict) preceded it and no other cause has been identified.

 

It goes on to postulate that those in the know have fleesed the financial system to get out wealthy not as a conspiracy but they have acted independently because they know the system is on the point of total collapse due to peak oil.

 

 

 

 

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just for you vedantaTrader,

 

2 vids for you, take a very close look at vid 2 & listen from 2 mins in, becasue that futures trader (iirc) knows what's coming.

 

From:

 

From:

 

2 mins in on the second vid remember ;)

 

I have heard this ad infinitum. Nothing new or insightful in what he says. This 100% guaranteed economic sophism is a risky propsect to follow. First things first. I never said that there won't be high inflation or the chance of hyperinflation. I m just not saying it is 100% guaranteed as many are. Secondly, I m prepared for huge volatiity which will mean 50% corrections in many markets, commodities etc, strong USD rallys and yes corrections in silver gold along the way.

 

Third I own gold and will continue to buy and own gold. Gold will maintain purchasing power in either scenario. However it is one thing to say something will happen and very different to follow what actually is happening. In my world I prefer to follow money flow and what the markets are doing not what everyone expects them to do. So yes I m calling for an intermediate term USD rally and said that gold would correct. Does this mean I m longterm bullish on the USd or bearish on gold, no it just means I see an opportunity to go with what the money flow and market is suggesting what will happen now against what people think should happen. I cannot predict, I can follow however.

 

 

Here is the 10 year US T-Bond, the arrows show money moving in, thats what I follow...One can argue that shouldnt happen like our Goldfingers through all means of logic , but it is...so I trust that more. Doesnt mean it will continue. Right now I m not so bullish on bond prices, or stock prices and see a well needed correction in gold and silver is taking place as I called for. I also see value in the USD(now) but not over the next few days possibly, but a bottoming process has been in place since August. Can and will my picture change in a few days, weeks and months? For sure...However can I say I know better than the market? I don't think so. If the market gets it fundamentally wrong, then it will change accordingly and I will follow that as it happens...

1260572442_82_UploadImage.png

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Here is the 10 year US T-Bond, the arrows show money moving in, thats what I follow...

 

Vedanta, are you following Money Flow Index or Chaikin Money Flow indicators? Do you see them as valid?

 

Also you posted something previously regards a proprietary indicator, clearly you would not want to disclose the details but would you mind giving some pointers regarding the key technicals that you follow?

 

I haven't done a full study but there appears to be some validity to Linear Regression, certainly with the activity in gold and GDX lately;

 

 

Gold futures

Linearregression.png

 

GDX

GDX.png

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I have heard this ad infinitum. Nothing new or insightful in what he says. This 100% guaranteed economic sophism is a risky propsect to follow. First things first. I never said that there won't be high inflation or the chance of hyperinflation. I m just not saying it is 100% guaranteed as many are. Secondly, I m prepared for huge volatiity which will mean 50% corrections in many markets, commodities etc, strong USD rallys and yes corrections in silver gold along the way.

 

Third I own gold and will continue to buy and own gold. Gold will maintain purchasing power in either scenario. However it is one thing to say something will happen and very different to follow what actually is happening. In my world I prefer to follow money flow and what the markets are doing not what everyone expects them to do. So yes I m calling for an intermediate term USD rally and said that gold would correct. Does this mean I m longterm bullish on the USd or bearish on gold, no it just means I see an opportunity to go with what the money flow and market is suggesting what will happen now against what people think should happen. I cannot predict, I can follow however.

 

 

Here is the 10 year US T-Bond, the arrows show money moving in, thats what I follow...One can argue that shouldnt happen like our Goldfingers through all means of logic , but it is...so I trust that more. Doesnt mean it will continue. Right now I m not so bullish on bond prices, or stock prices and see a well needed correction in gold and silver is taking place as I called for. I also see value in the USD(now) but not over the next few days possibly, but a bottoming process has been in place since August. Can and will my picture change in a few days, weeks and months? For sure...However can I say I know better than the market? I don't think so. If the market gets it fundamentally wrong, then it will change accordingly and I will follow that as it happens...

 

thanks for your detailed reply.

 

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then ask yourself why did he come to this site, then stopped posting (or very rarely posts now)?

 

 

 

 

or perhaps you & the rest of the paper shouters and gold doubters™ p1ssed him off ??

edit - cgnao insecure :lol: :lol: ffs sake that's one of the daftest statements I have ever heard, sounds like a 'please post here' desperation tactic to me. ;)

 

 

 

 

 

also, just so you can see that I am very realistic on the pog. Nothing goes up or down in a straight line.....right.

putting my conspiracy theorist hat on for a moment.

 

CGNAO buys gold put options, works for the government to get the best price for their gold, and stopped posting because they bought enough puts.

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putting my conspiracy theorist hat on for a moment.

 

CGNAO buys gold put options, works for the government to get the best price for their gold, and stopped posting because they bought enough puts.

 

no, that's your deflationist hat. ;)

 

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no, that's your deflationist hat. ;)

Nah, nothing to do with inflation/deflation, just a few western bourgeoisie with crashing tax revenue and vast swaths of uneducated illiterate eastern factory workers willing to be rewarded for their hard labour with shiney yellow soil.

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The recent retreat in the price of gold has scared the $h1t out of long term gold bulls. :lol: :lol:

http://gold.approximity.com/gold-silver_watch.html

goldusdlogguess111209.png

 

Is that your website, GF : http://gold.approximity.com/gold-silver_watch.html

 

I love the charts.

You ought to get a domain name, and link it in.

 

I will put a prominent link somewhere on my other site : http://www.Goldstock.co.uk

...if you like?

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Apx will certainly like that.

How about a Domain link going into a page like that?

 

Spline has his :

 

How about your own Domain name for that chart page?

We can have a Poll here in GEI to help name it, which would give it some useful attention

 

GoldLongTerm.com - is one possibility

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Another take on the Gold spin..........

 

http://www.smh.com.au/business/theres-more...91215-kt3q.html

 

There's more gold where that came fromDecember 15, 2009 - 11:26AM Be the first to comment

 

Forecasts of 'peak gold' are enough to get a hoarder's heart racing. But wait, there's more - much more.

 

The gold bugs' faith has taken a little beating lately when a just a tiny stir by the US dollar has been enough to halt the yellow metal's rally. But wait, there's more - much more.

 

Gold that is. Part of the dogma of the less rational gold bugs is that the world is running out of the stuff. As an article of faith, it makes a pleasant change from the idea that fiat money is about to be exposed as huge confidence trick and we're heading back to the caves.

 

(Why you'd bother with gold in that scenario is beyond me – I'd figure tomato seeds, chooks and possum skins would be the new wealth if civilisation crumbled.)

 

There is no shortage of dire forecasts of "peak gold" and that all the stuff that was in the ground will very soon be on brides' fingers and in China's central bank. A favourite figure thrown about in gold bug newsletters is the United States Geological Survey's brave announcement that 2008 global gold reserves were 47,000 tonnes – which is just 19.5 years' production at the 2008 mine supply of 2415 tonnes.

 

That's the sort of stuff to get a gold hoarder's heart racing and fuel the sale of gold bug newsletters, but it's also ridiculously simplistic and misleading.

 

The "peak gold" story isn't quite as dodgy as some of the "peak oil" scare mongering the more sensationalist media have trotted out over the years – we'll never run out of oil as the market mechanism very successfully rations it and because, at a price, we simply make the stuff. Shell, for example, is spending $20 billion building a gas-to-diesel plant in Qatar.

 

But the "peak gold" panic merchants also tend to downplay the wonderful job the market performs. When the price of something goes up, more effort is put into producing it.

 

Precious metal analysts at South Africa's StandardBank – a mob that certainly isn't full of gold sceptics – have nicely put the "peak gold" scare into perspective.

 

In a letter to clients, StandardBank's Walter de Wet first acknowledges the statistics from the USGS and the decline in mine supply over the past three years, as counted by precious metals consultancy GFMS. The all-time high for gold mining was 2001 when 2645.7 tonnes of it were dug up.

 

The higher gold price though means that more gold has been mined this year than in 2008 – which set de Wet to wondering just how much gold remains in the ground.

 

"Reserves" are defined as gold which can be economically extracted at the time of determination, hence the 2008 USGS figure of 47,000 tonnes.

 

Then there's the "reserve base" which is ore that has a reasonable potential of becoming economically available. On that basis, there are 100,000 tonnes of gold, or about 42 years' worth at current production rates.

 

"However, the gold price used in these estimates is the long-term price as of 2008," writes de Wet. "We believe during the last two years, the long-term price for gold has shifted substantially higher, as the marginal ounce of mine production has become more important.

 

"Therefore, the reserve base could be much greater. Also, potential world gold resources could be large. For example, the US estimates its gold resources (identified and undiscovered) at 33,000 tonnes.

 

"Given that the US gold mine production is 10% of global mine production, if you assume gold resources are proportionate to current mine production, global resources could be 330,000 tonnes. That is another 137 years of production."

 

And 137 years is a long time to be hoarding gold, waiting for supply to run out.

 

In the meantime, the gold price's recent stall thanks to the Greece and Dubai-inspired up-tick in the US dollar demonstrates just how much of the gold rally has really been a currency story rather than anything intrinsically valuable about the yellow metal. It's just another alternative to greenbacks, one that doesn't do much productive or pay dividends but relies purely on speculation for any non-currency price improvement.

 

The unkind might think that's why the gold bugs keep the scare campaigns coming – that and the need to sell more internet newsletters.

 

 

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Another take on the Gold spin..........

 

http://www.smh.com.au/business/theres-more...91215-kt3q.html

 

There's more gold where that came fromDecember 15, 2009 - 11:26AM Be the first to comment

 

Forecasts of 'peak gold' are enough to get a hoarder's heart racing. But wait, there's more - much more.

 

The gold bugs' faith has taken a little beating lately when a just a tiny stir by the US dollar has been enough to halt the yellow metal's rally. But wait, there's more - much more.

 

Gold that is. Part of the dogma of the less rational gold bugs is that the world is running out of the stuff. As an article of faith, it makes a pleasant change from the idea that fiat money is about to be exposed as huge confidence trick and we're heading back to the caves.

 

(Why you'd bother with gold in that scenario is beyond me – I'd figure tomato seeds, chooks and possum skins would be the new wealth if civilisation crumbled.)

 

There is no shortage of dire forecasts of "peak gold" and that all the stuff that was in the ground will very soon be on brides' fingers and in China's central bank. A favourite figure thrown about in gold bug newsletters is the United States Geological Survey's brave announcement that 2008 global gold reserves were 47,000 tonnes – which is just 19.5 years' production at the 2008 mine supply of 2415 tonnes.

 

That's the sort of stuff to get a gold hoarder's heart racing and fuel the sale of gold bug newsletters, but it's also ridiculously simplistic and misleading.

 

The "peak gold" story isn't quite as dodgy as some of the "peak oil" scare mongering the more sensationalist media have trotted out over the years – we'll never run out of oil as the market mechanism very successfully rations it and because, at a price, we simply make the stuff. Shell, for example, is spending $20 billion building a gas-to-diesel plant in Qatar.

 

But the "peak gold" panic merchants also tend to downplay the wonderful job the market performs. When the price of something goes up, more effort is put into producing it.

 

Precious metal analysts at South Africa's StandardBank – a mob that certainly isn't full of gold sceptics – have nicely put the "peak gold" scare into perspective.

 

In a letter to clients, StandardBank's Walter de Wet first acknowledges the statistics from the USGS and the decline in mine supply over the past three years, as counted by precious metals consultancy GFMS. The all-time high for gold mining was 2001 when 2645.7 tonnes of it were dug up.

 

The higher gold price though means that more gold has been mined this year than in 2008 – which set de Wet to wondering just how much gold remains in the ground.

 

"Reserves" are defined as gold which can be economically extracted at the time of determination, hence the 2008 USGS figure of 47,000 tonnes.

 

Then there's the "reserve base" which is ore that has a reasonable potential of becoming economically available. On that basis, there are 100,000 tonnes of gold, or about 42 years' worth at current production rates.

 

"However, the gold price used in these estimates is the long-term price as of 2008," writes de Wet. "We believe during the last two years, the long-term price for gold has shifted substantially higher, as the marginal ounce of mine production has become more important.

 

"Therefore, the reserve base could be much greater. Also, potential world gold resources could be large. For example, the US estimates its gold resources (identified and undiscovered) at 33,000 tonnes.

 

"Given that the US gold mine production is 10% of global mine production, if you assume gold resources are proportionate to current mine production, global resources could be 330,000 tonnes. That is another 137 years of production."

 

And 137 years is a long time to be hoarding gold, waiting for supply to run out.

 

In the meantime, the gold price's recent stall thanks to the Greece and Dubai-inspired up-tick in the US dollar demonstrates just how much of the gold rally has really been a currency story rather than anything intrinsically valuable about the yellow metal. It's just another alternative to greenbacks, one that doesn't do much productive or pay dividends but relies purely on speculation for any non-currency price improvement.

 

The unkind might think that's why the gold bugs keep the scare campaigns coming – that and the need to sell more internet newsletters.

 

The second comment there is worth quoting too;

 

'Peak gold, like peak oil, refers to the "cheap" reserves that can be economically recovered at prices that the market will pay. When the market prices rise, then recoverable reserves increase, but that is the point that gold bugs have been making. Peak gold will contribute to higher gold prices. However, unlike oil, there are no manfactured substitutes for gold.

But the major part of a gold price increase will come from currency inflation, not peak gold.

I am not a gold bug. A day will arrive when gold should be sold, but it won't be any day soon. In the meantime, we can expect more sour grapes articles from financial journalists who have been proven wrong with their gold forecasts and can't understand what has been happening.

 

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Another take on the Gold spin..........

 

http://www.smh.com.au/business/theres-more...91215-kt3q.html

(Why you'd bother with gold in that scenario is beyond me – I'd figure tomato seeds, chooks and possum skins would be the new wealth if civilisation crumbled.)

 

Another person being dishonest. Gold and silver are easy to store and exchange for a variety of goods and currencies and they have been for thousands of years. Not to understand it is equivalent to not understanding why people save money or specialise in one trade over another or wear jewellery or have sexual intercourse.

 

It is not a straight choice between fiat currency in a complex society or twenty people surviving a holocaust and being smallholders and only bartering. The author of the article knows this well enough. It is these ridiculing comments that turn me off the anti yellow mud arguments.

 

Why do the anti gold people care? If you don't want to hold gold don't bother. What is the use of arguing about it ad infinitum on an internet site? Is there some "Gold is crap Church" that will rubber stamp your entry into heaven if you convert a gold bug?

 

It is almost infinitely tedious.

 

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Shouldn't we be thanking the "cartel" for the present of cheaper gold? :lol:

 

I think so.

 

I do like that this pull back takes some heat off gold and allows it to climb some more, discreetly.

 

Slowly, slowly catchy monkey.

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Another take on the Gold spin..........

 

http://www.smh.com.au/business/theres-more...91215-kt3q.html

 

There's more gold where that came fromDecember 15, 2009 - 11:26AM Be the first to comment

 

Forecasts of 'peak gold' are enough to get a hoarder's heart racing. But wait, there's more - much more.

 

The gold bugs' faith has taken a little beating lately when a just a tiny stir by the US dollar has been enough to halt the yellow metal's rally. But wait, there's more - much more.

 

Gold that is. Part of the dogma of the less rational gold bugs is that the world is running out of the stuff. As an article of faith, it makes a pleasant change from the idea that fiat money is about to be exposed as huge confidence trick and we're heading back to the caves.

 

(Why you'd bother with gold in that scenario is beyond me – I'd figure tomato seeds, chooks and possum skins would be the new wealth if civilisation crumbled.)

 

There is no shortage of dire forecasts of "peak gold" and that all the stuff that was in the ground will very soon be on brides' fingers and in China's central bank. A favourite figure thrown about in gold bug newsletters is the United States Geological Survey's brave announcement that 2008 global gold reserves were 47,000 tonnes – which is just 19.5 years' production at the 2008 mine supply of 2415 tonnes.

 

That's the sort of stuff to get a gold hoarder's heart racing and fuel the sale of gold bug newsletters, but it's also ridiculously simplistic and misleading.

 

The "peak gold" story isn't quite as dodgy as some of the "peak oil" scare mongering the more sensationalist media have trotted out over the years – we'll never run out of oil as the market mechanism very successfully rations it and because, at a price, we simply make the stuff. Shell, for example, is spending $20 billion building a gas-to-diesel plant in Qatar.

 

But the "peak gold" panic merchants also tend to downplay the wonderful job the market performs. When the price of something goes up, more effort is put into producing it.

 

Precious metal analysts at South Africa's StandardBank – a mob that certainly isn't full of gold sceptics – have nicely put the "peak gold" scare into perspective.

 

In a letter to clients, StandardBank's Walter de Wet first acknowledges the statistics from the USGS and the decline in mine supply over the past three years, as counted by precious metals consultancy GFMS. The all-time high for gold mining was 2001 when 2645.7 tonnes of it were dug up.

 

The higher gold price though means that more gold has been mined this year than in 2008 – which set de Wet to wondering just how much gold remains in the ground.

 

"Reserves" are defined as gold which can be economically extracted at the time of determination, hence the 2008 USGS figure of 47,000 tonnes.

 

Then there's the "reserve base" which is ore that has a reasonable potential of becoming economically available. On that basis, there are 100,000 tonnes of gold, or about 42 years' worth at current production rates.

 

"However, the gold price used in these estimates is the long-term price as of 2008," writes de Wet. "We believe during the last two years, the long-term price for gold has shifted substantially higher, as the marginal ounce of mine production has become more important.

 

"Therefore, the reserve base could be much greater. Also, potential world gold resources could be large. For example, the US estimates its gold resources (identified and undiscovered) at 33,000 tonnes.

 

"Given that the US gold mine production is 10% of global mine production, if you assume gold resources are proportionate to current mine production, global resources could be 330,000 tonnes. That is another 137 years of production."

 

And 137 years is a long time to be hoarding gold, waiting for supply to run out.

 

In the meantime, the gold price's recent stall thanks to the Greece and Dubai-inspired up-tick in the US dollar demonstrates just how much of the gold rally has really been a currency story rather than anything intrinsically valuable about the yellow metal. It's just another alternative to greenbacks, one that doesn't do much productive or pay dividends but relies purely on speculation for any non-currency price improvement.

 

The unkind might think that's why the gold bugs keep the scare campaigns coming – that and the need to sell more internet newsletters.

 

I'm enjoying this now. We are now well and truly into the 'skeptical' phase of the bull market.

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Why do the anti gold people care? If you don't want to hold gold don't bother. What is the use of arguing about it ad infinitum on an internet site? Is there some "Gold is crap Church" that will rubber stamp your entry into heaven if you convert a gold bug?

 

It is almost infinitely tedious.

 

There is another crowd of people who are totally against property rising in value.

 

At each and every opportunity they attack anybody who does not see the truth of endlessly rising prices.

 

 

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There is another crowd of people who are totally against property rising in value.

 

At each and every opportunity they attack anybody who does not see the truth of endlessly rising prices.

There's apples and pears as well.

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There's apples and pears as well.

 

sure. gold and tungsten. silver and platinum. i wonder how tungsten gets along with all these flouro lights?

 

I expect though that apples and pears are rising in price also.

 

After all in the goldfinger scenario it could be ten years before hyperinflation. Meanwhile people have to eat.

 

 

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Clive Maund.

 

Dry and humorous. Well made me smile this dark wet morning. Here you go.

 

The easiest way to be popular in this business is to tell people what they want to hear. Goldbugs fall into this category. They want to be told that gold is going up, and that any downturn is just a correction and another buying opportunity. They have a special class of writers catering to their needs, known as Permabulls. The Permabulls have their bullish arguments, which are pretty convincing it must be said, sometimes with generous helpings of conspiracy theories to spice things up, which they repeat at regular intervals, and their targets at $1500 or $3000 or whatever. In recent weeks the permabulls have been basking in a glory of adulation and have practically been carried around in sedan chairs by their acolytes. We don't cater to this class of investor, except coincidentally on those occasions when we have good reason to be raving bullish too - so if you are a goldbug, who wants to be told that gold is going roaring up, you are advised to click out of this article now. Our analysis is aimed at pure traders - those who don't care whether the market is moving up, down or sideways as long as they are on the right side of the trade. Remember that you can make money even in a sideways trading market by playing the range or writing options.

 

So what's going on now - is that it? - has gold topped out already? There is a very wide range of opinions out there on this topic and quite often the investor is left feeling even more befuddled after reading them all than he was before he started. For instance, we have Elliot waver Ron Rosen, whose articles appear on Kitco, who is very bearish on gold over the medium-term, predicting that gold will collapse back to $640. It is hard to take him seriously though because he has been saying the same thing since before gold broke out to embark on its recent strong uptrend. At the other end of the scale we have gold superbull "Fractal Dave" whose articles also appear on Kitco, who is predicting a spectacular ramp by gold, with an objective at $1420 next March, en route to a much higher target in 2011. So far he has been right but even he is calling for gold to rest in a triangular pattern here for perhaps a few weeks before the advance resumes. Then we have Bob Moriarty of 321gold, who has a good nose for market extremes, and called the recent top in gold a shade too early as the writer did, who is now believed to be looking for a significant reaction. Next, Adam Hamilton, who is right most of the time, even if his essays take an afternoon to read, is looking for a hefty reaction in the broad stockmarket on the grounds that it has had a long, uninterrupted rise, and also a reaction in the PM sector. Finally and of course most importantly we have Maund himself, looking for a potential parabolic advance in the PM sector fuelled by a suicidal attempt to stave off powerful depressionary forces by manufacturing money to maintain liquidity and paper over the cracks, but keenly aware that the situation is now dangerously unstable and growing more so by the day, so that a major catalyst could trigger a deflationary implosion at any time - like last year, only worse, which could result in Ron Rosen's dire predictions coming true. This is why we ride the beast, but keep a close eye on the position of the exits, and why we take so seriously developments like the breakout in the dollar last week, and during high risk periods like the current one resulting from the dollar breakout we step aside and await developments

 

 

http://www.kitco.com/ind/maund/dec142009.html

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After all in the goldfinger scenario it could be ten years before hyperinflation. Meanwhile people have to eat.

 

 

 

Good point. I know a guy who starved while waiting 7 minutes to sell his gold on bullion vault then get money out of the cash machine then buy some vegetarian sausages and a small bottle of appletise.

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Clive Maund.

 

Dry and humorous. Well made me smile this dark wet morning. Here you go.

 

The easiest way to be popular in this business is to tell people what they want to hear. Goldbugs fall into this category. They want to be told that gold is going up, and that any downturn is just a correction and another buying opportunity. They have a special class of writers catering to their needs, known as Permabulls. The Permabulls have their bullish arguments, which are pretty convincing it must be said, sometimes with generous helpings of conspiracy theories to spice things up, which they repeat at regular intervals, and their targets at $1500 or $3000 or whatever. In recent weeks the permabulls have been basking in a glory of adulation and have practically been carried around in sedan chairs by their acolytes.

 

Wow. Great stuff that. A balanced argument in the press again.

I'm surprised he doesn't talk abour Pied Pipers, or mention THE Piper by name.

 

So what's going on now - is that it? - has gold topped out already? There is a very wide range of opinions out there on this topic and quite often the investor is left feeling even more befuddled after reading them all than he was before he started. For instance, we have Elliot waver Ron Rosen, whose articles appear on Kitco, who is very bearish on gold over the medium-term, predicting that gold will collapse back to $640. It is hard to take him seriously though because he has been saying the same thing since before gold broke out to embark on its recent strong uptrend.

 

I can still see the E-wave argument for $650, but it became less convincing when Gold took out the $1030 high.

 

At the other end of the scale we have gold superbull "Fractal Dave" whose articles also appear on Kitco, who is predicting a spectacular ramp by gold, with an objective at $1420 next March, en route to a much higher target in 2011. So far he has been right but even he is calling for gold to rest in a triangular pattern here for perhaps a few weeks before the advance resumes.

 

Fractal David should be very much at home amongst our 24K brethren.

 

Then we have Bob Moriarty of 321gold, who has a good nose for market extremes, and called the recent top in gold a shade too early as the writer did, who is now believed to be looking for a significant reaction.

 

Moriarity is a confirmed nutter. He "lost it" when he flew under the Eiffel Tower looking for that famous

huge cube of gold that would fit there, but I still enjoy listening to his views for some reason.

 

Next, Adam Hamilton, who is right most of the time, even if his essays take an afternoon to read, is looking for a hefty reaction in the broad stockmarket on the grounds that it has had a long, uninterrupted rise, and also a reaction in the PM sector. Finally and of course most importantly we have Maund himself, looking for a potential parabolic advance in the PM sector fuelled by a suicidal attempt to stave off powerful depressionary forces by manufacturing money to maintain liquidity and paper over the cracks, but keenly aware that the situation is now dangerously unstable and growing more so by the day, so that a major catalyst could trigger a deflationary implosion at any time - like last year, only worse, which could result in Ron Rosen's dire predictions coming true. This is why we ride the beast, but keep a close eye on the position of the exits, and why we take so seriously developments like the breakout in the dollar last week, and during high risk periods like the current one resulting from the dollar breakout we step aside and await developments

 

http://www.kitco.com/ind/maund/dec142009.html

 

I'd be betting with Hamilton right now.

But if Gold shares start to stall on the downside as general indices fall, I be looking for Gold's rally to resume.

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