muses of the moment

October 16, 2010

Update on gold

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 1:15 am

Take a look at this 10-year gold chart from chartoftheday.com. Click here.

This chart verifies what Jesse at Cafe Americain has been saying, $1375, then retracement, then $1455.

Looking at this chart, a case can be made that the resistance line needs to be redrawn higher, based on the highs of the last five years. If that line were redrawn, then Jim Sinclair’s prediction of $1650 in January 2011, could be feasible.

Groovygirl is leaning toward this conclusion because the media has now taken an interest in gold (whether positive or negative). This is a bullish sign in the overall long-term trend bull market. When the media starts to look at a market, the trend line changes again and increases the steep of the line.

My conclusion doesn’t mean we can’t have a retracement. I am just thinking the highs could be higher, sooner than this chart predicts.

We are in uncharted territory, making new highs. Anything is possible, that is why it is a good idea to buy on any dips and hold. Or just buy at any price and hold long-term.

Physical gold and silver are your insurance against the collapse of the USDollar.

Side musing: groovygirl chuckled at the JP Morgan “good-will” commercial this morning. You know the banks are grasping at straws when they have to spend money on PR campaigns. Very sad.

Dead banks can’t do anything for customers or home owners. Anyone that thinks they can, is just plain delusional. The banks are dead, people. Walking dead, zombie banks.

Side-side musing: Take a look at that percent of global investment in gold chart (last chart). Click here. We have a long way to go in this bull market. And take the advice of¬† investors of the past…30% in precious metals related investments is the norm during historical currency crises.

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