RE: correction/crash
peter,
I.M.H.O.
I suspect there could be a move in POG. But,(this is where I differ from many others),I don't think the effect would be immediate. I think we would see a new low posted the day of a minor correction.
Yes, I think a 10-20% correction, from these lofty valuations, would only be seen as another "chance to buy" by most in this market. I think we could see a 10-20% down "correction" soon((& maybe 10% bounce), & a big 25-35% down move "crash"(?) in 4th quarter.
But don't invest on what I think, invest on what you think.
I think we might see the $310-330 range by the time of the crash.
I also think POG will not move down as (if?)dollar is devalued vs new Euro.
If it will take $1.29 to buy the new Euro, The way I figure it, that would value gold in the $357 range(from current POG). If we saw the price I'm guessing of $310-330 it could drive a price of $370-394.
At that level,we would see lost of money rushing to gold, and who knows where it could go.
Most Americans just can not understand the idea of a dollar which is weaker. Most can't understand currency markets, they think only in dollars.they will only see gold costing more dollars, won't even think about what the dollar is "worth".
rh |
