Thursday, May 27, 2010

Short-term Bottom in Gold

We’ve got a short-term bottom in gold. Yellow metal should now be preparing for yet another new record high. No surprise — the deteriorating fundamentals … the sovereign debt crisis … the plunging euro … North and South Korea … stock market slides … and more — are all positive for gold.

See short video and chart discussion at link:


BxCapricorn said...

The bottom was in on Thursday with almost every other stock. This is a screen shot of my spreadsheet, GG is Goldcorp, one of my favs.

WE are in the buy zone, but this could back up a bit and present a better buy than Friday. Personally, I think the move is upward from here. They officially plug Macondo over the 3-day weekend, and everything's going higher. Volume today was weak, as everyone is just waiting around for a direction.

Anonymous said...

Silver will explode to the upside shortly as well once people finally realize the digits in their accounts are losing value by the second.

BxCapricorn said...

Don't forget that silver is one of those hybrid metals. There is short side upside, but if the libor climbs and lending stops, in walks deflation and silver gets hammered. I know it's not fair that the market can paper trade many times the actual volume of existing physical silver. It's not a conspiracy, IMHO, because banks leverage a physical dollar into 8 dollars of loans, and people buy homes, cars, and use credit at volumes many times their annual income. It's the Keynesian aspect of our World. Would Austrian School Economic discipline lead to a better World? Maybe, maybe not, but I do know this. Our World is designed to be Keynesian, so we should deal with it as such.

As far as silver goes, we've got good short term upside, but potentially deflationary long term downside.