Do Not Miss Out On The Looming Gold Bubble
Gold was all the rage again last week. But why is it rising, and does anyone really know what it’s worth?
According to the way I calculate momentum, gold has just barely entered the gravity-free zone – where it has the potential to start advancing a lot, with much more fluidity.
Chairman Ben S. Bernanke, gold would have to reach a little more than $6,400 an ounce. (The calculation is simple: The monetary base is $1.7 trillion and the United States owns 263 million ounces of gold. Divide, and voila!)
Could this happen? Well don’t let anyone fool you. Gold is almost completely worthless except to the extent that people of an era like to own it, and as such it has varied wildly in price over the years.
I am watching it go up and up and up day after day….Even I think Gold needs a little bit of a pullback and I’m a gold bug! I wonder when the profit taking is going to take place or is everyone buying to hold until the collapse of the US dollar.
Even though I want gold to $1200 then $1500 then 2k per oz, I think we need at least a breather to $1100 or $1115.
I decided to make a short term play and shorted it at $1,159 and as we speak, im a little in the red as the price is now $1163 hitting a new all time high. I will probably take myself out of the trade if it hits 1168-1170 range.
Gold’s headed for a bubble, but it’s not there yet. We’ve heard it all before. Gold was in a bubble two years ago when it hit $650 an ounce, and before at $500. Gold will hit bubble territory one day but we are not there yet.
This bull market, which began in 2001, is now some eight years old. We are beyond the stealth phase and into the awareness phase with room for much more price appreciation through 2010.
Mark Crisp Article Source:http://www.articlesbase.com/investing-articles/do-not-miss-out-on-the-looming-gold-bubble-1495088.html
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