07/06/09 Baltimore, Maryland
From a technical standpoint, gold looks set for some short-term pain. Just like stocks, the gold chart is taking a page from 2008. Check it out:
When it hit the fan last year, gold failed to deliver the righteous moonshot many had forecast. It certainly was a better place to be than stocks, but gold still suffered. Until further notice, the same playbook appears to be in use today… gold may be the once and future money, but the dollar and U.S. Treasuries remain the ultimate flight to quality when the going gets tough.
After sticking to a tight range the last few weeks, gold fell today along with stocks. The spot price shed $10, to $925 an ounce.
“I see everything coming up roses for gold and those who mine it,” says Chris Mayer, armed with proof he’s not the only value hound with his eye on gold.
“For the first time in a couple of decades, some of America’s most successful, big-name investors are buying gold. David Einhorn, the hedge fund manager who predicted the downfall of Lehman Bros., recently bought gold for the first time.
“And then there is John Paulson, the guy who made billions of dollars by correctly anticipating the housing bust and credit crisis. Paulson just plunked down $1.3 billion for an 11% stake in AngloGold. He’s also got a big position in Kinross Gold.
“Peter Munk, the 81-year-old chairman and founder of Barrick Gold, also offers up his own anecdote about gold’s broadening appeal. ‘I have had more phone calls in the past six months than ever before — from people who have $120,000 inherited from grandmother, and from hedge fund managers with millions,’ he says. ‘I am not saying George Soros, but people of that caliber have told me they are buying gold.’
“You no longer have to be a gold bug to think gold will rise in price. In fact, this buying by some of the world’s greatest investors may be the leading indicator for a quick 116% climb — to $2,000 per ounce or higher. Give gold the cold stare of a professional handicapper and the odds look very good, indeed.”
Ian Mathias
Ian Mathias is the managing editor of Agora Financial’s Income Franchise, where he writes and researches about retirement, dividend and fixed income investing. Much of his work is featured in The Daily Reckoning and Lifetime Income Report – Agora Financial’s flagship income investing advisory.
Previously, Ian managed The 5 Min. Forecast, a fun, fast-paced daily look into the future of global markets and macroeconomics. He’s also worked in public relations, where media outlets like Forbes, AP, Yahoo! and MSN Money have syndicated his writing. If he’s not at work, you’ll probably find Ian on a bicycle, racing up and down the “mountains” of Baltimore County. Ian has a BA from Loyola University in Maryland.
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I’m confused,is the author saying gold will fall to around $700 before rising again, or that it is only going to rise from this point?
I’m thinking I’m sitting tight and accumulate on dips. I’m not day trading this stuff!
So after years of BUY GOLD BUY GOLD BUY GOLD the DR now recommends selling it eh??!! WTF !!! Are you mad !! I just bought more today at £18,300 first thing this morning…and it is already up to £18,450 by lunchtime…BUY BUY BUY surely!!
i like the idea but i dont ever want to be without gold or silver,these 2 markets are explosive and just when you think it wont it will.
been in the metals for 30 years the swings in the price can change your life!
it aint good in paper world.but there will always be paper rich people to buy my art thats why i own art.
and you will always need to sell your gold to get paper to buy things.
but never be without the metals,just sharing.printing and borrowing is the worlds best business.Catch my radio show every wed morning at 8 am
the main street money show
phx.az.www.1100kfnx.com