So, what next for Gold......?

[Mega]

Up?
Down?
?
Mike

[Starving Steve]

Re: So, what next for Gold......?

Gold $1500, then a filling of the gap on the gold chart down to $1000 or $1200 as the floor, and with $1500 being the ceiling; then a few years on, a sagging toward a final bottom possibly as low as $700. Any major news in the world such as a world war with the hoodlum nations or an energy shock coming from the hoodlum nations, or an inflation shock caused by the Federal Reserve Bank would change this long-range view on gold, of course. My forecast for silver is bearish, with a target floor of $12. This would put gold at a bearish floor of roughly 60:1 with silver. In fact, this might even be too optimistic for silver because in bear markets, gold always holds-up better than silver.

In a climate forecast, Starving Steve envisions a return to first-year El Nino with a very cold winter in eastern North America; a strong jet stream ( storm track ) in the Gulf of Mexico north-eastward toward Europe, mainly affecting south France and the Iberian Peninsula.... In the eastern Pacific, warm and wet again; strong storm track passing north-eastward from north of Hawaii to northern California and even bringing a substantial amount of rain to southern Calif. Los Angeles may get approx. 18 inches of rain, and San Diego might get a total of approx. 14 inches of rain during the winter ahead.

First year El Nino always comes as a shock to the climate-frauds in the EPA, and also to that bunch at East Anglia University in the UK. It's the strength of the cold fronts coming southward, especially those coming out of Canada into the Lower Great Lakes states in the U.S. and into the Upper Midwest that shock the CO2 bunch back to reality..... Europe gets its shock from cold fronts moving south-eastward out of Greenland.

One fly-in-the-ointment is that the Sun may reach a solar maximum activity in the next year, as part of the solar-cycle, so this would moderate the cold in the eastern part of North America because the solar radiation would be stronger. This would mean that the big adjustment into El Nino cold in the eastern part of North America would be delayed until 2014..... Similarly, the cold in western Europe would be moderated due to the stronger solar radiation next year, so the big adjustment downward in temperature in Europe would occur in 2014.... Again, this chill in 2013 or more likely, in 2014 will make jack-asses out of the CO2 bunch.

Going back to the gold forecast above: It really pivots on what our friend or nemesis, Mr. Bernanke, is doing and is going to do at the Fed with his zero or ultra-low nominal interest rate experiment. If he keeps a tight reign on the money supply, this period of zero nominal interest rates wouldn't really matter. In fact, these zero interest rates could add to the de-flation because no-one would have interest income from anyone, and everyone would starve. At least, this is how zero-interest rates worked-out in Japan when this experiment was tried there first.

But if Bernanke behind the scenes shovels money into the banks to be lent out for next-to-nothing, then this period of zero interest rates could end-up being ultra-inflationary. This could end-up being a replay of the Arthur Burns years at the Fed when he shoveled money out the front-door of the Fed to banks in order to stimulate lending and stimulate the economy. As everyone in their 60s remembers, the inflation accelerated into something very near hyper-inflation when inflation rose well into double-digits per year.

If Bernanke does the Arthur Burns thing by trying to covertly boost the money-supply in an attempt to stimulate the economy, $1500 could turn-out to be the floor for gold, and gold would move back toward a challenge of the $2000 line.

Currently, observing real estate around Silicon Valley, we are definitely in a strong de-flation. No-one is buying. No-one is interested in homes. The home sales are fakes, and the homes are placed onto the market at the same price ( or lower ) about a month or two after the faked home sale.... It's hilarious! So, my guess is that gold is very over-priced right now, and the buyers will exit the gold market soon..... Homes don't go down in price at the same time gold goes up in price--- at least, I have never seen that happen.

[DRumsfeld2000]

Re: So, what next for Gold......?

http://www.financialsense.com/contri...-the-gold-mine

[jneal3]

Re: So, what next for Gold......?

http://www.financialsense.com/contri...-the-gold-mine

This was so enlightening, at least for me, that I think it belongs behind the paywall (but I'm glad it's not...). Thanks.

[raja]

Re: So, what next for Gold......?

Up?
Down?
?
Mike

Going down . . . for now.

The desire to seek a safe haven is overpowered by the lack of money for new asset allocation due to the stock plunge.

[globaleconomicollaps]

Re: So, what next for Gold......?

Up?
Down?
?
Mike

Here is what I am thinking. Measured in pounds it already bottomed. Measured in dollars it might touch the dotted blue line. So, both up AND down.


-G

[Mega]

Re: So, what next for Gold......?

"Measured in Pounds its already bottomed"

Agreed!
Am getting some tomorrow.........not worried if it falls more......i want Physical!
Mike

[lektrode]

Re: So, what next for Gold......?

....i want Physical!

here ya go:



damn, was she hot in them daze or wot?

(and hopefully y'all can see this, as it appears that googtube is jumping to the next vers of vid playback - like it somehow matters that its 'bleeding edge' = MORONS! now we all gotta 'upgrade' our phreakin browsers/plugins AGAIN? - the wintel conspiracy marches on...)