Gold - from weak hands to strong hands

  1. 9,081 Posts.
    Although it may seem improbable to many on this forum, it is a fact that, despite gold's hefy fall in recent days, the price of the yellow metal is still in uptrend.

    That's right ... uptrend!!

    The bull run in gold has completed the first wave of its three wave long term bull run after having moved off its lows of around $252 US dollars) per ounce.... that run took it to over $327 per ounce.

    The pullback to around $300 is a "normal" retracement / consolidation after such a strong run as weak holders are shaken out.

    In fact, the gold price could fall to $290 per ounce in this retracement phase and still be in uptrend.

    Some chartists maintain that it could even fall all the way back to its 1999 lows and still be in uptrend (based on their view of the long term comex gold chart). While a fall of this magnitude is possible, I believe that it is highly unlikely.

    Gold may consolidate around current levels - and maybe into the $290 range before it begins its next wave which will see the price well past the $330 level.

    After that ... more consolidation .... and some retracement.

    It is gold's third and final wave in its long term bull run that will be the most spectacular - with meteoric price advances occurring as investors finally "wake up" to the clarion call of gold's bull run.

    The fundamentals are well and truly in place.

    The American dollar has begun its long decline and the fiat monetary system will be under increasing pressure to cope with major crises developing in the world's fiscal economy.

    No amount of manipulation by governments or bullion banks caught short with their derivative positions will, ultimately, be able to alter the trend.

    So ... what is the best way forward for gold bugs?

    Obviously I believe that it is prudent to always maintain exposure to gold and / or gold stocks.

    If you are clever enough to trade the "tops and troughs" of the volatile price movements, this could be a good way to go.

    As a long term holder of gold stocks, I will be adding to positions in times of weakness ( and, hopfully, selling a small percentage near perceived market tops with a view to buying in again later)

    I know that there are some vitriolic "gold knockers" out there in Hotcopper Land and everyone is entitled to his / her view. This is just how I see it. (and quite a few others)

    It is always best if crtiicism is confined to the argument and does not descend to the personal. Gloating about one's success or mocking the failures of another is very counter productive.

    If 'ego' can be kept out of posts on this forum with points of views exchanged in a more objective manner, then maybe .... just maybe .... we might be able to avert some of the slanging matches that are such irksome diversions from the main game.


    Well .... from a "dyed in the wool" goldbug ... that's my two bo
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