Guree, I suppose they call it glad wrap because people who wrap themselves in it are glad they did.
While you are taking your chips off the table, keep this chart in mind.
kitco.com
And, it isn't updated to show today's price.
Also remember, if POG gets to $330, it cuts the VERY long term resistance line coming down from $850 in 1980.
The way I feel is, if goldie can make a nice turn, which it is doing, then there's nowhere else for it to go but up. Remember, the fundamentals and the market sentiment for gold are very different from last year. And the previous years.
There's no more CB selling, the hedgers are buying in their hedges, there are no more shorts. With all the recent mergers, an OPEC-like arrangement is tacitly being made which can control/regulate the amount of gold coming to the market. Certainly, the flood-gates of past years can be closed. And they will be.
Furthermore, there is very bad sentiment after the Enron debacle etc and the general market is pointing down. The PE on the S&P is in the sky. No one trusts any financial figures released by any US company. Either it's a bullshit figure or it's been "adjusted" by the CPA. So how can anyone invest? And in what?
Furthermore, no one trusts any currency. Dolla-wolla index is at its peak at 120 and all the other currencies are competing with each other to see which one can be the cheapest. And, goldie is flying. What does that tell you? There's a major loss of confidence in US and world economy. Goldbug heaven has arrived. And, if not gold, then other precious metals or "hard assets", including property. In fact, any "collectible".
As far as I'm concerned the gold share prices can go up or down, I don't care, I'm not cashing in any chips on my gold shares. The way I see it, gold is just about the only game in town.
And, it looks like it could be that way for some time to come. |
