<<John Dessauer, in his April 1998 "Investor's World" newsletter, entitled a section "Bigger Problems Ahead for Gold". He asserts that there is an enormous supply of gold coming into the market via Central Bank selling. At the same time, he states, demand is shrinking and will continue to shrink for the next several years. He sees the price of gold at $200 or lower.>>
Who is BUYING???? If demand is shrinking, why the current bottom (NOW IN PLACE!!) and gold stocks/gold mutual funds all breaking above their 200 day moving average?? For those not technically inclined, a stock price chart which has been a long price decline (as Gold has), puts in a bottom (ditto), and breaks above the 200 day moving average, USUALLY (nothing is certain in this world) signals the beginning of an up trend of some duration IMO at least 6 months, more likely a year. If you are a non-believer, look at some long duration charts with the 200 day MA from back when previous bear markets had occurred either in the individual stock or the general market; not just gold!! These indicators work for gold also!! Just so you know that the reverse is also true, a break back below the 200 day MA after a sustained rise is very serious, and is why no one should have held gold stocks during this last bear market in gold!! OK, off my soap box!! Best Regards, Mtn Bear
PS: Had not read all msgs before posting; just one more comment re E. Waves: I Get See Sick 'cause I can't interpret "em!!! |
