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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (26740)	1/1/2006 12:41:38 PM
From: Rarebird	Read Replies (1) \| Respond to of 57684

>>one could turn around your argument and just say that gold really appreciated in dollar terms but not in global terms.<< Gold has been a major INVESTMENT success all over the world in 2005. $US Gold is up over 18%, Euro Gold and Yen Gold are both up over 35%, and Australian Gold is up over 25%. And even more interesting, the $US Index was up over 12% in 2005. $US Gold has clearly made the transition from a dollar weakness story to an inflation story. >>The price of gold is higher because central banks are reducing gold sales and some have announced that they will be adding them to their reserves<< Central Banks are the greatest contrarian indicators in regard to the POG. They have a long history of selling near the lows and buying near the highs. Lag time is usually about 18 months to 2 years. usagold.com On May 7, 1999, the Bank of England (for the first time since 1972) announced plans to "auction" off 58% (415 Tonnes) of its Gold reserves over the next few years. This was done at the tail end of the Bear Market in Gold. LOL. That's typical central bank behavior. By the time the central banks get bullish on Gold, the advance is already in the 7th inning. 2006 has the potential to be a very good year for Gold. I'm on record predicting new all time highs by January 2007. However, the risk of a very sharp correction is high this winter. Anyway, I'm currently out of the Gold Market. But I do love Gold. I made lots of money buying the Miners at dirt cheap prices when the BOE was selling. >>gold and silver should be part of a long term investment portfolio.<< LOL. One always hears this kind of talk near the end of a nice bull run before a possible blow off (to new all time highs). But Gold is just a trade. Don't get caught up in that hoopoola. There is no basis to just buy and hold the gold miners here. They are meant to be traded, on the long side AND short side.