BARRON's Commodities Corner (Cheryl Strauss Einhorn) has only bad comments about gold! (I see that as very bullish!). An exerpt:
"These include: central bank disposals, poor demand from financially worn Asia and a sound low-inflation economic outlook that bodes better for financial than physical assets. "The sell-side has it for the first half," says Felix Freeman, Scotia McLeod's gold analyst. "Prices are expected to decline toward the $265 area for the next three to four months.""... oooohlala! Brand new points we have here!
And she goes on and on about saying that many mines are in debt, and are overvalued. "Rally occured on a technical basis" (Hey! that is how I went back into gold... could not agree with her more!) and retraction will occur.
Nothing she says is wrong, except her outlook about gold's trend (IMHO). She thinks gold will continue to go down... I think the opposite! Because Europeans are buying gold (and Dells, and Gateways, and Compaqs in big numbers). If the US start to dive in it, we should be all set. I remember vividly Alan Abelson (Barrons Editorial) criticizing Compaq for 2 weeks in a row... to have Compaq immediately get out of basing and making news highs...!
I think Mrs Einhorn's piece was a political editorial (a smear campaign against gold, rehashing all the negatives which have brought gold down)... too prevent a gold rush. She would not like to be "responsable" for adding fuel to the gold fire during these worldwide economic deterioration, or would she?... Who would like to have a rush out of equities and have gold going straight up: that would only help very few wealthy investors and mess up the investment community and especially Mutual Fund Managers. Just IMHO.
Good luck all.
Gaston
And remember: Cheryl Strauss Einhorn is the commodity expert, here, ...and I am definitively NOT! I don't know how to trade options for example. Here is my tack about gold and why it could continue to go up:
(1) "dumb money" might jump in (not understanding the danger), and
(2) 1/2 of the smart money will take a contrarian look about gold and invest in it. Just a guess!
(3) The other 1/2 of "smart investors" will dump gold (as per Mrs. Einhorn).
I belong to the dumb investors and backed up the truck. Sorry.
I will get some money out of gold, on time,... I hope. BIG forces are probably organizing themselves to try to squash this rally if it goes too high, methinks. |
