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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (63770)	2/26/2009 7:55:47 PM
From: Claude Cormier	Read Replies (3) \| Respond to of 78407

Many gold traders follow the charts and last week, many technical indicators became overbought in the short term. The correction was to be expected. I wrote this on February 15th. \|\| But when I look at the monetary data for the United States \|\| and elsewhere, what I see is a exaggerated replay of what \|\| happened about 1971. Exact. The ratio between gold and monetary aggregates is nowhere where it was at the peak of the 1970-1980 bull. We have a long way to go and gold must quintuple to match this past data. So that is the case for the long term bull. But in the short and intermediate term, correction will continue to happen. I prefer to stay with gold as I don't think that economic activity will be strong enough to cause growth. At best, growth will worsen in the next year and eventually climb back near 0% or slightly above. THis is above all a monetary crisis. I think we are getting into an inflationary depression and that gold will continue to outperform other commodities. Oil will also do well in coming years because of peak oil.