This piece was written several days ago and although it appears gold is working its way through this correction and consolidation rapidly; we’re going to post it anyway with the idea that perhaps there are some long term benefits to be gained by doing so. First and foremost is the idea that we are going to have more corrections along the golden path and it behooves us to learn from past lessons and not follow the other lemmings over the cliff. Keep your eye on the primary trend in gold, and whether or not there is any political will to reign in the spending and or slow down the printing presses. Will there be any plan to retire this enormous debt that has been built up over the past ten years in both the US and abroad? Finally, it is imperative to observe and understand the geopolitical ramifications of trading oil in currencies other than the dollar.
Secret Confessions of a Young Bull Market in Gold
Two Giants of the Investing Industry Discover Common Ground
One from Dallas, the other from San Diego find a meeting of the minds via a French liaison.First of all, we have a bit of a correction underway on February 7, 2006. Gold is down about twenty bucks to the $550 level. Please, not to panic! This is a normal correction in an ongoing bull market. Sit tight. This bull is trying to buck you off because that’s his job. The bull wants to go as high as possible as long as possible with as few people on board as possible. The bear operates in exactly the opposite fashion. This holds true for all the markets but for some reason it is especially true for the gold market. Actually, that reason is because gold is a political metal and competes with fiat currencies. All the rah-rah “paper boys” have no affinity for gold.