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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: c.hinton who wrote (127182)	12/17/2005 9:27:38 AM
From: skinowski	Read Replies (1) \| Respond to of 209892

McClellan's argument that Gold made a major top is based on the shape of the price chart. I can't tell whether this is a major reversal, or maybe it's just time for another consolidation. As for the "real world" picture - that is even more likely to cause confusion. Gold always was very "political" - and much of it is controlled by governments. It is true that the world has become "larger", and there is more wealth than ever out there, looking for return and for safety -- but what if markets and RE decline (and so does combined nominal wealth)? How would that influence the price of Gold? A common answer is that central bankers would start printing. I agree -- but I expect that at first they'll print too little, and then later - too much. Somewhere in between there might be a good time to buy gold.