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Gold Fever at 1174.90 We’re Out with a Buy Stop in Case
Based on half a century of participation in markets, we have learned to pay more attention to what people do with their money and less to what they say.
Higher prices in gold lead to higher real interest rates and scarcer money and credit. Right now Bankers are tightening, and this is not bullish for most markets except perhaps dollars.
We have often been early, one reason we read Rick and use Trailing Buy and Sell Stops.
People tend to extrapolate recent performance.
Yet there are still buyers and sellers in every market.
People who can go against the crowd may make the most money.
Meanwhile, the productive answer may be a transaction tax replacing income and payroll taxes for more productive jobs and savings, with higher interest rates and a strong dollar signaling it really is time to Buy American, as Warren Buffett wrote last Fall.
http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=1&pagewanted=print
We have no idea if these events may be days, weeks, months, quarters, years or even decades away.
Meanwhile, deflation does seem to have more money and fewer advocates on its side.
By the way, both Dr Friedman and Greenspan responded they thought there were too many dollars to return to a gold standard.
Regards*Rich
http://www.jubileeprosperity.com/
November 30th, 2009 at 8:03 pm
Possibly… I agree that near term, gold is more likely to decline than rise. Long term, I expect it to either hold steady or soar, depending on how chaotic things get.
Also, your blog doesn’t have an RSS feed! You really should consult Wordpress and make sure it has one, it’s the whole point of having a blog!
December 2nd, 2009 at 10:31 pm
We’ve added some easy-RSS buttons. Typically your web browser should also detect the presence of the RSS feed and give you an RSS icon in the right-hand side of your browser location bar.
In any case, you should be good to go now!
-mark
December 12th, 2009 at 12:01 am
Go to 1337.20 or 417.10? Wow. That is some analysis. Subscribe to his chatroom for a week and watch all the different numbers pop up for gold, anywhere from 0-3000. I followed his calls and went 0/10 before I said enough. Better off to randomly enter a trade with a stop.
December 12th, 2009 at 2:37 pm
First let me say, thank you very much for this outstanding synthesis of information. One other recommendation would be to add a previous or next page button or arrow to move from page 1,2,3,4,5,6 to add some convenience and flow.