Skip to comments.Gold Bugs Poised to Pounce on Next Big Rally
Posted on 01/17/2014 1:44:21 PM PST by Red in Blue PA
Gold bugs, rejoice. After taking a pounding last year, gold looks set for a big rally, although chart watchers say it still needs a little push higher before it takes off.
A gain of about 1.5% from current levels would take gold above a key chart level, which could spark a further rally of 13% to the August highs, technicians say, and possibly much higher.
After tumbling 28% in 2013, gold futures have gained 4% so far this year. On Friday, futures were up 0.9% at $1,251.60 an ounce in recent trading, and were trading above the widely-followed 50-day moving average at around $1,242, which many technicians use as a short-term trend gauge.
Abigail Doolittle, founder of Peak Theories Research, said technical conditions have become very, very ripe for a big move higher in gold, and the very long-term supporters of the metal are getting ready to add to their positions again.
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I’ve had 14K and 18K gold charms for sale on Ebay. Three months, and not one sale. The items are near their scrap cost in price and that price keeps rising. Some items have turquoise, pearls, and diamonds mounted on them and are of high quality in goldsmithing.
The latest sales end in about 24 hours. I will not relist until the gold rally gets going. Maybe, combined with Valentine’s day, they’ll sell for a bit more.
Golly, all the TV commercials say gold is a great investment. William Devane says buy now!
Once we hit 20T in debt, and other countries’ economies begin to collapse, gold will take off again. It’s only a matter of time.
I never was a fan of gold as a hedge, until countries began their out of control spending. You can print money all day long; you cannot print gold.
But did you get the Biblical Money Code?
I ran a 10 year chart comparison of S&P vs NEM. Interesting. Looks like a dragon with its mouth wide open. :-) the question is timing and whether gold falls more before recovering. Anyone that invested a lot in gold in early 2011 got hosed pretty badly and took about a 60% hit. So one has to be cautious.
I like the idea of gold as an item of barter, but not as that of money.
The U.S. used gold as a basis of money in the late 19th century in an effort to destroy the use of Lincoln’s “greenbacks” printed during the Civil War. See:
The Money Masters
Bill Still has a good explanation of why silver was removed as money during that period of time. It will anger you to realize gold was used to weaken our economy.
In the last 26 years, it (NEM) has only gone lower a few times, and not by that much. Even during the “end of the world times” of the 2008 meltdown, it only fell to $26 or so. I believe most of the risk has been wrung out of it.
I would put this up against Facebook, Twitter, Google or Apple for the next 3 to 5 years. Looking at a finite timespan, timing for this one will be an issue, but in terms of risk/reward, it is one of the only good plays in this market IMO.
I’m still trying to figure out what Bitcoins are.
No, you have to dig it out of the ground. All day long.
what are dollars? paper with magic scribbles?! why is that worth anything?
Michigan refinery will give you a fair 95 pct of melt price.
Dollars are worthless. I will send you a silver coin for every thousand US dollars you send me.
If gold rises above $1285 this month, the bottom is probably in and it will be off to the races. If it sinks and fails to close above that level this month, it may be looking for a bottom below $1200 later this year...
Or maybe not
Those of us who started at $280 just stand pat and wait
Sweetie, you can’t eat gold during a collapse.
Even a roll of toilet paper might be more valuable to someone looking to swap beef or a couple of chickens for a few rolls of TP.
I have no problem finding honest metal dealers. We have two in my town.
While TP and Spam may have value during an economic collapse, so will gold. It is not an either/or proposition.
TP and Spam will likely be traded by the masses; gold by those behind secure compounds. Both have a role to play and both will be valuable.