The FT reports that there are record inflow to gold funds, new floats and enquiries from family offices, hedge and pension funds and retail investors.
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The FT reports that there are record inflow to gold funds, new floats and enquiries from family offices, hedge and pension funds and retail investors.
Aaaaaah, well, at the moment EZ, but you might want to contemplate this excerpt from a book I have here.
"As the investment gathers momentum, it gathers followers. Soon, sophisticated, professional investors like managers of pension and mutual funds dive in. As the price rises, more people try to ride the wave, among them fledgling individual investors who pull money out of the bank in search of bigger returns. The media trumpets the investment's accelerating rise. Eventually everyone knows the story, the last dollar is in and the ripple fades into nothingness."
Do you have a crystal ball at home Lego Man?
ENP
This so called "Gold Bubble" will continue trending up in the mean time due to a few factors:
1. Demand - try & source the physical stuff, it's not that easy to find & when you do it's at a hefty premium
2. $US weakening, now has the PoG > $A1500/oz
3. Europe debt worries, as more countries face up to the truth about there debt
4. US payroll figures disappointed the market, showing the US recovery is slower than analysts predicted
I did predict earlier in the thread i though Gold would hit $US1250 & then retrace a bit (it's had a very bullish run)
No one is saying Gold will go up forever, cos just like shares, property, bonds, interest rates they all follow an economic cycle, it's just with all the uncertainly at present Gold's value holds as a nature hedge against the $US.
When Europe sorts its mess out & the US recovery kicks in, Gold wont be so attractive as a short term investment.
So you do realise that it's going to pop, but you are just riding it up in the mean time?
Exactly just like a TA chartist works, when theres strength in the buying & its going up you jump in, when it starts it's inevitable decline you get out.
Gold will take a breather at some stage, the steeper the rise, the more chance of a retrace, not sure on a TA basis where the levels of support are, perhaps $US1100/oz, & there would be psychological (if not technical) support at $US1000/oz
Here you are Shasta :-
http://i602.photobucket.com/albums/t...sPB/Gold68.gif
Thanks for that Phaedrus, appreciate your work