Tag Archives: gold price

Gold bugs: look out below! I think gold could fall to $1000 or even less as it realigns with other commodity prices. Words: 865; Charts: 4

David Mcalvany (www.mcalvany.com) covers the reasons behind the major pullback in metals on April 12, and where they may go from here, in this most enlightening and re-assuring 8:14 minute video.

People who are saying there is no reason to buy gold now, never understood the reason people were buying it in the first place. People weren’t buying gold because they were worried about a crisis in the Eurozone or weak US stocks. People were buying gold because central banks were printing too much money. It’s inflation that drives the gold train, not political uncertainty.

I view the current market weakness in gold, coupled with the pullback in trader positions, as a shorting opportunity which is strong in terms of reward vs. risk. I have come to that conclusion by questioning the assumptions that many make about it, isolating its fundamental drivers and providing a trading recommendation as to where I believe the price is headed in the future. Let me share my analyses with you. (Words: 1440; Charts: 4; Tables: 1)

Back on December 21st Toby Connor suggested that Gold probably had one more curveball to throw us before the final yearly cycle bottom which would see it set a new low at around $1630 a couple of weeks thereafter. Given the events of today Connor was right on the money, Below is a recap of that December article with rationale for his forecast. Words: 350

I recently explained my thesis for why gold's 12-year winning streak will come to an end in 2013...[and] nearly a month into 2013, the case for selling gold is gaining strength. [This article puts forth 5 compelling reasons why it is now time to sell gold.] Words: 690 ; Charts: 2

The threats of global recession, insurmountable debt, terrible government policy, central bank support, and many other very persuasive arguments present gold as a very appealing investment or safe haven but all of this is an illusion. Gold was a sensible investment in the early part of the bull market (1999-07), but has now become a false sense of security for many investors who will soon learn the hard way. Not only are the fundamentals already priced in, the technicals severely weakened, and the extremes in gold optimism easily apparent, but the bad news for gold could soon get much worse. The next weeks or few months will hopefully give us a lot more clarity. Words: 1170

The situation in the gold market today is different than the one in 1980 in a few important areas. Even if past patterns don't give you any certainty, though, sometimes they can limit the uncertainty. Let us analyze that in more detail. Words: 1260; Charts: 2

The current availability ratio of physical silver to gold for investment purposes is approximately 3:1. So, why is it that investors are allocating their dollars to silver at a much higher ratio? What is it that these “smart” investors understand? Let’s have a look at the numbers and see if it’s time for investors to do as a wise man once said and “follow the money.” Words: 1052; Tables: 1

The facts can't be denied: China is on the hunt for gold deposits and mines. These gold-focused deals will add more ounces to the country's pool of gold assets [which will only exacerbate the ex-China downward trend in the supply of gold outside China]. Given that what's produced in China stays in China (where there is escalating domestic consumption), a widening of the fundamental market shortage in gold seems almost certain. Words: 1138