Gold seems to be a metal that can be played for long term
trends. The current trend has been down for quite a while
and we are near 2 year lows. Now comes news that
Russia may open up its reserves for export and hedging on the
COMEX. Other nations such as Switzerland have already announced
plan to sell gold supplies. Interest rates are low, and
the US economy is slowing. The Bre-X mine in Indonesia has 50
million proven ounces and once that supply starts coming onto
the market, we should see even more downside pressure.
Many traders are commenting that gold has lost its usefulness
as an inflationary hedge.
I'm short. Comments? How low can it go? |
