Wednesday, Nov 28, 2007

Gold is correcting nicely

Gold Price: Gold Price Wave 3 Begins - Gold Shares will Catapult Higher

Gold is down from 835 to 790 in 2 days. The HUI (gold stocks) will tumble today too. Once this correction has finished, and it could be very soon, there is an excellent chance to buy gold stocks and see 50pc gain in 6 months.

Posted by sold 2 rent 1 @ 08:07 AM (521 views) Add Comment

9 Comments

1. rickyb said...

However fascinating the price fluctuations of the heavy yellow metal, what exactly does this have to with house prices and their inevitable crash?

Wednesday, November 28, 2007 10:51AM Report Comment
 

2. dohousescrashinthewoods said...

The gold price is a useful indicator because it says how much crisis people think is out there.
Also useful for investing your STR proceeds if you think Gordoid is going to use hyperinflation to serve his own nefarious ends.

Crisis -> higher gold
Crisis -> HPC

Wednesday, November 28, 2007 11:13AM Report Comment
 

3. planning4acrash said...

So S2R, you got this one spot on, well done! Are we at the bottom of the correction? How long till the upwave? IYHO?!

Wednesday, November 28, 2007 11:38AM Report Comment
 

4. cyril said...

What concerns me is that all this advice to buy gold is published by gold dealers.

Wednesday, November 28, 2007 11:38AM Report Comment
 

5. sold 2 rent 1 said...

I am no gold dealer.
I am an IT bod who runs a travel website - or should I say the site runs itself whilst I figure out what is going on with the world economy and where should I invest my money.

I started blogging a year or so ago with the view of house prices seem to be overvalued.
The questions I asked - are we looking at a repeat of the 1990s? How far will prices fall? When and how long will they fall?

I have studied, stocks, property, HPCs, commodities, IRs, bonds, long term debt cycles, secular cycles, K-waves, Elliott waves, gold, the banking system, currencies, fiat monetary systems, and financial history covering 300 years.

My conclusions so far are that HPC is pretty much guaranteed and prices may fall between 30-60pc in real terms over 4-8 years.
Money in the bank can no longer be treated as safe because of bank runs, inflation and currency devaluation.
Gold has a huge history of store of wealth when times get tough.
This time will be no different.

Wednesday, November 28, 2007 12:37PM Report Comment
 

6. planning4acrash said...

Thanks, it starts to look a bit risky tho when gold drops from 840 to 790 in a couple of days and when the metal is very susceptible to the whims of large institutional and governmental investors.

Wednesday, November 28, 2007 01:10PM Report Comment
 

7. happyrenterz said...

I am keen on gold as investment but I have serious doubts about buying gold stocks right now. For many years now gold has tracked the oil price. Currently the oil price is crazy, almost double the price it was in January, this does not reflect the supply issues or the 10% devaluation of the dollar. It is being manipulated by market players. Gold has obediently followed it up and will probably follow it down too.

Wednesday, November 28, 2007 01:38PM Report Comment
 

8. sold 2 rent 1 said...

happyrenterz & planning4acrash,

I agree that oil and gold are strongly correlated.
Both are priced in dollars and both do well in an inflationary environment.

But at some point this relationship could break down (unless we really are in peak oil) like it did in the 1930s.

As for an entry point, I might say between now and Dec 11 when the Fed makes a rate decision and gold takes off again on a rate cut.

Stocks are going up today as Goldman forecasts 3pc US IR by mid 2008.

Critically the EUR/YEN has gone above 1.62.
Could this be the final surge in the Yen carry trade before it implodes?

Traditionally December has been a good month for stocks - maybe not this time

Wednesday, November 28, 2007 02:01PM Report Comment
 

9. Joe said...

Provided this is a 5 wave chart you are referring to, such as tht Aden Report uses it will be the biggest, that is the third or C wave.

Sunday, December 2, 2007 08:28PM Report Comment
 

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