1 May 2008
I'm too busy to post right now, but I simply have to state that the present sharp correction in the gold price is the most meaningless correction to date in the present gold bull market.
Why?
All the fundamentals are in place for gold to replace "paper" (digital?) currencies as real money in the third millennium.
Financial assets are in the process of being thoroughly discredited as a consequence of rampant, reckless and unregulated speculative activity. Governments have only one solution - which is to spend, spend, spend. And central banks have removed the mystery regarding their monetary policy agendas. Loose money is the rule of the day, and will remain so for as far as the eye can see.
In 2001, all the reasons not to own gold had evaporated, but the case FOR owning gold was only emerging. It was risky to own gold in 2001. Gold was still a speculative investment.
In 2008, every foundational point arguing against the ownership of gold has collapsed. The bull case for gold has been thoroughly established, and there is simply no remaining argument against owning gold. It will trend upwards uninterrupted for at least a further decade, as all the brakes have been removed - in fact, there is no reinstalling them at this point. It has gone too far. The freight train (of the speculative, financially-engineered economies of the US and the western nations) is barrelling downwards on a steep grade with no end in sight.
May 2008 is as good a time to buy gold as was April 2001. The current sharp pullback is a consequence of decisions made by traders with short-term investment horizons only. It is meaningless, and of no consequence, for long-term gold investors whatsoever.
For anyone with an investment horizon of greater than two years, there is simply no possible way to go wrong by owning gold from here.
I doubt that owning gold can again be questioned until it has at least doubled today's market price of approximately $850.00. That puts me onside with Jim Sinclair, who sees gold at $1650 per ounce by 2011.
I'm holding my gold investments until then, and planning to retire that year.Source URL: http://idontwanttobeanythingotherthanme.blogspot.com/2008/05/2001-revisited-gold-most-meaningless.html
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I'm too busy to post right now, but I simply have to state that the present sharp correction in the gold price is the most meaningless correction to date in the present gold bull market.
Why?
All the fundamentals are in place for gold to replace "paper" (digital?) currencies as real money in the third millennium.
Financial assets are in the process of being thoroughly discredited as a consequence of rampant, reckless and unregulated speculative activity. Governments have only one solution - which is to spend, spend, spend. And central banks have removed the mystery regarding their monetary policy agendas. Loose money is the rule of the day, and will remain so for as far as the eye can see.
In 2001, all the reasons not to own gold had evaporated, but the case FOR owning gold was only emerging. It was risky to own gold in 2001. Gold was still a speculative investment.
In 2008, every foundational point arguing against the ownership of gold has collapsed. The bull case for gold has been thoroughly established, and there is simply no remaining argument against owning gold. It will trend upwards uninterrupted for at least a further decade, as all the brakes have been removed - in fact, there is no reinstalling them at this point. It has gone too far. The freight train (of the speculative, financially-engineered economies of the US and the western nations) is barrelling downwards on a steep grade with no end in sight.
May 2008 is as good a time to buy gold as was April 2001. The current sharp pullback is a consequence of decisions made by traders with short-term investment horizons only. It is meaningless, and of no consequence, for long-term gold investors whatsoever.
For anyone with an investment horizon of greater than two years, there is simply no possible way to go wrong by owning gold from here.
I doubt that owning gold can again be questioned until it has at least doubled today's market price of approximately $850.00. That puts me onside with Jim Sinclair, who sees gold at $1650 per ounce by 2011.
I'm holding my gold investments until then, and planning to retire that year.Source URL: http://idontwanttobeanythingotherthanme.blogspot.com/2008/05/2001-revisited-gold-most-meaningless.html
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