RE: RE: RE: Summer's doldrum down time for gold I am willing to bet QE3 does not happen. Europe is where the "problems" lie at the moment. America is beginning to see "green shoots". Their housing market has finally bottomed and has begun to increase, their unemployment is slowly redeeming itself. They are not in the dire straights like Europe is. If anyone should be doing some Q.E. it's the europeans. Believing that the Fed in the US will print another round of money on the eve of an election is rediculous. Plus the Canadian economy is also doing good enough. QE 1 and 2 were introduced when things were worse then they are now. By inflating commodities further from here at too rapid of a pace would not help anything except gold traders and banks themselves. That is not worth the risk to an election year. The US needs an additional 2-5% decline in unemployment before they would consider doing this.
In the short term USD will continue to rise as it is seen as the "safe haven" paper currency. But Gold will do fine. These people who think gold will be $3500 by next year are on a whole other planet. Gold will one day hit that mark sure, but not at a rapid pace. Gold is currently stuck in a range of $1550 to $1625. Until supply/demand push it one way or the other. I believe it will stay sideways for another 18 months and then begin to push back up.
I am a holder of SMF, I have been sent down -55%. That is life. So are most of my other holdings from oil to coffee. The only stock I am doing ok in is a Natural Gas play that happens to be up 2%. I believe gold will rise over time, but these dooms day scerios are just pure paranoia. Europe will feed our bear market a little longer and ruin many stock's valuation for now, but that just opens great buying opportunities in time.
Good luck.