Gold topped in 1980, as I recall, and then entered a pretty nasty bear market which lasted for about 20 years. It started around the time when Volker started tightening credit, trying to stop inflation.
Timing the Pullback in Gold could be lucrative, but yeah, it ain't easy. EW - wise, it could be argued that Gold is in the end stages of a multi-year advance, and it's ripe for a correction. But, as we all know by now, Elliott Waves love to keep stretching and extending.... so, and exact timing remains elusive.
It seems that concerns about the future of the dollar is what drives the advance in Gold. Those are very valid concerns, no doubt. By the same token, even with all the printing, dollars are not easy to come by. Jobs are scarce, salaries are stagnant. The US has a hard time finding a niche in the globalized economy. This threatens to be a setup not so much for inflation as for plain old fashioned poverty. For a decline in the standard of living.
Politically, there appears to be a reaction building up against indiscriminate printing.
All those factors create a situation when a serious decline in the price of Gold may be possible.... but again, there are no... actionable... signals.
We'll be working on it.... And if some day the price comes down back to he level of "bargain" - I'll remember your post and will buy... :) |
