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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (123772)	7/17/2008 1:04:48 PM
From: koan	Read Replies (1) \| Respond to of 312669

I see gold rising short term as inflation has just started. It would be very odd for gold to go down just as inflation is taking hold worldwide. I have never seen that i.e. inflation rising and gold falling. And inflation is on fire. Go ask any grocer how much they are raising prices right now! Robert Prector and other TA folks are also saying to sell gold now. I still have my bet that Prector and the rest are wrong. In fact I have not seen the market so ripe for a rise in gold in almost 30 years. In this weeks Newsweek they have a graph which shows oil expenditures as a share of GDP. In 1980 it hit 8% and during that time 1973 to 1980 gold rose parabolicly in tandem with oil. From 85 to 2005 oil bumped along the bottom at 2% of GDP. Since 2005 oil started rising as a percentage of GDP again and in late 07 oil started rising parabolicly like in 78/80 and is forcast to go above 8% GDP by 2010. The two parabolic graphs (73 to 80) and 2005 to 2010) look identical. So if gold follows oil again as a % of GDP then in inflation terms one could expect gold to get to between $2,000 and $3,000 by 2011 and in a straight up line with no major corrections.