The Coming Week's Price Of Gold

Sooner or later there is going to be the big profit take, then the panic sell by others, and over time a return to "normal" prices. We saw it in real estate just recently, and with help from the brothers we saw it with silver in '80. P.M's will always beat inflation over the long haul, but today's gold prices, at least to me, seem way out of wack.

Just my opinion.

Big pullback ! If it recovers, then Gold will soar.

Seems to work that way sometimes. Gold, like the equity markets, is due for a correction. This does not change the underlying fundamentals, which are still very bullish for gold.

$1300-$1400 is less than a year away. That may well be the peak in this cycle.

It's interesting that last week word from China was that they wanted to buy 1,000 tons of gold (about 30,000,000 troy ounces) but they thought $1,200 was too high a price.

Friday morning the BLS reports unemployment had dropped and the USD strengthened on the news, spurring lower gold prices and some selling, bringing in an overdue correction.

Now China can get their 1,000 tons for $3 billion less than it would have cost them last Wednesday.

Just some observations. It doesn't really mean anything and I'm not saying this was manipulation because a correction back to $1,100 is not very surprising.

We're still looking at $1,300 by spring.

"I'm pretty sure I used closing prices over a 24 hour period when I figured the drop & it wasn't anywhere near 6%."

I used the high of $1218 and todays low.

This is a normal correction after a sharp rise. The same thing happens in other markets.

By this time next year, gold will pass $1600, with silver in the $30 to $35 range. If the government keeps flooding the world with FRNs, those numbers will be low.

just before a local coin auction, last sunday, we were discussing gold futures.
There were bets it would hit US$2,000 in two years for gold bullion and 12 months from now, the same US$2,000 for gold content in coins