Bank of America / Merrill Lynch Recent Gold Video

[phinolerun]

This is a link to one of the videos that can be seen before logging on to the Merrill Lynch website; it is a public video. I Just thought it would be helpful for I-tulipers to view. In short, their head technician, Mary Ann Bartels, says to look for a $1,200 gold price in the short to medium term before adding to positions.

I will let the I-tulip community decide.


http://wealthmanagement.ml.com/wm/pa...cnav=mymerrill

[Polish_Silver]

Re: Bank of America / Merrill Lynch Recent Gold Video

This is a link to one of the videos that can be seen before logging on to the Merrill Lynch website; it is a public video. I Just thought it would be helpful for I-tulipers to view. In short, their head technician, Mary Ann Bartels, says to look for a $1,200 gold price in the short to medium term before adding to positions.

I will let the I-tulip community decide.


http://wealthmanagement.ml.com/wm/pa...cnav=mymerrill

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1) I think if you wait for $1200, you will have a very long wait.


2) How do interest rates affect the cost of holding gold? Did she mean "verses bonds" ?
It's good she brought up interest rates, though.

3) Merrill Lunch used to be a separate company. When it was going belly up the FED forced B of A to swallow it. That is not Bartel's fault though.

[shiny!]

Re: Bank of America / Merrill Lynch Recent Gold Video

If people are buying paper gold, waiting for $1200 might be a good idea. But if you're buying physical, high premiums at that low price could wipe out the benefit. You also run the risk of not finding any at your local coin shop, or paying your money then having a long wait before you receive your product.

[phinolerun]

Re: Bank of America / Merrill Lynch Recent Gold Video

She is a technician, so, as EJ puts it, one of the people that looks at made up "levels" and numbers that determine where and when the next major move in a given investment will be. Other market participants look at these same levels and make similar decisions, thus reinforcing the theory. The $1,200 level, from what I've heard, appears to be the next major "level of support" according to the charts.

Interest rates affect holding gold and other non interest bearing investments based on opportunity cost. Today, an investor can hold an ounce of gold or $1,450 in cash and more or less receive the same amount of income ... 0. As rates rise, it becomes more costly to hold gold in that the investor is foregoing interest he or she could have earned if they held a CD or other type of time deposit. Additionally, as EJ has pointed out in past articles, gold has both gone up and down in periods of both rising and falling interest rates. The same goes for inflation ... inflation in the late 80's and 90's certainly existed, and yet gold prices remained more or less stagnant. From what I remember, his conclusion on the major driver of gold prices long term continues to be global confidence in the main default currency (the dollar) and indirectly, oil prices. Inflation was also a driver of gold prices, however, gold tends to perform the best in periods of "high" inflation or higher than normal inflation; take the late 70's and the 2007 thru middle of 2008 time periods.

Yes, Merrill, used to be it's own company. As far as I'm concerned, this doesn't seem to have affected their research one way or the other. They have the same goal as most of the other brokerage firms on the street ... earn profits on increased investor activity or encourage fee based investing.