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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (22286)	8/24/2009 4:26:33 AM
From: Real Man	Read Replies (1) \| Respond to of 71479

I have no playbook with gold, telling the market what to do is not my style. Overall, gold seasonal period is now bullish, with September usually the strongest month of the year. I'm just long. CFTC fund regulations can cause short term weakness in gold as well, but if investors just start swapping GLD for physical, gold will soar enormously. I would also expect additional demand in precious metals thanks to CFTC regulations. To answer your question, no, I am fully long precious metals at this time, except that I did diversify into other areas. This is still by far a major position, and gold will likely now lead other commodities much higher, assuming traditional inflation hedge role.

To: NOW who wrote (22286)	8/24/2009 4:55:18 AM
From: Real Man	Respond to of 71479

I see CFTC restrictions as fundamentally extremely bullish for the precious metals, as traditionally a precious metals bull is driven by investors scared of currency devaluation, and CFTC is killing PM's competition for this money (unlike natural gas, gold is very easily stored by small investors) There are other bullish developments - Central Banks in Europe are reluctant to sell more gold, and ones in Asia are swapping their dollars for it. As futures go physical in the PM sector, I would expect a squeeze. They might ban hoarding gold too, and they did so in the past. That would drive it even higher.