http://dailyreckoning.com/gold-again/“It’s difficult to find any positive news in the depressed gold market. ... At around $260 an ounce, the metal continues to trade near its cost of production and almost no one believes it will rally soon.”
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One of my favorite predictions of all time is the one by Barrons writer Cheryl Strauss Einhorn in her Commodities Corner column in Barrons in February 2001 - just weeks before gold took off skyward and never really looked back. At the time she wrote her now infamous headline gold was selling for around $260. (Are you still out there Rono?)
Make what you will of it. But, somewhere in here is a lesson for the ages.
Comments
Now that gold is around, and back of, the $1,250 range I have been buying SGDDX through a position cost average approach. Thus far, I am up while building the poition. Currently, the fund is off its 52 week high by about 20%.
Old_Skeet
"The fact that Gold has barley sold off and still remains above $1,200 per ounce, similar price where it traded 18 months ago, indicates relative strength and buying interest. Other commodities, such as Crude Oil, have not been as lucky with greenback moving up so high. Eventually the US Dollar rally will pause and take a breather, because nothing can keep rising vertically forever. It is my view that Gold will outperform when that time comes.
Now... most trades would like to know when that will happen? Because I do not have a crystal ball, I cannot answer that question like other so called "experts". But what I can say is that the current price action in Gold shows a major compression in the form of a technical triangle. This pattern is edging closer and closer to a break in either direction, which should give us further clues "
portfolio-update-buying-pms/