muses of the moment

October 18, 2012

London Trader

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 2:58 pm

London Trader has done three different interviews over at KWN. Click here for a starting place. May be worth your attention. gg’s only caution: ponzi schemes can go on for much longer than you think. But they always implode.

A review of the gold price

Filed under: Long term investing — totallygroovygirlfriday @ 1:49 am

There are lots of theories on the top in gold.

Let’s review some…..

Martin Armstrong’s computer cycle theory suggests $5000.

Jim Sinclair suggests that gold must reach the number of oz of US gold divided by the international holdings of US debt. This is the formula he used in the late 1970’s to get the top gold price. He was right on. It would be around $12,000 at the moment.

Similarly, there is a general theory that the gold cycle runs every 40 years or so where gold is undervalued at the trough and then overvalued at the peak. But it goes through this cycle to match the loss or gain of purchasing power of the underlying currency. It is not a coincidence that the low in gold was within 18 months of the high in the dollar.

And similarly, John Williams of shadowstats.com has the real inflation-adjusted price of gold right now around $9500 and silver around $550.

From a technical-theory stand point, Alf Field has gold reaching $10,000 in an Elliott Wave Pattern.

groovygirl is reviewing all these theories  to show that the price of gold is low right now. The daily trading is just noise.

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