RE: RE: RE: simple solution, put Bashers on ignore 1st off, who wasn't posting during the Bre-x thing?
Secondly, I do agree about what I call the "double high spike" as a signal for a downtrend. (or inversely for a uptrend), but I'm not talking about what will happen in a quarter or two (especially with summer coming on). I'm talking about the general movement of gold over the long term... I'm talking about; will it reach the latest highs and continue on.
Will it hit the latest highs?... it's possible, will it go to $2,000.00, $2,500.00, $3,000.00; I doubt that very much.
As I've said before, the only REAL use for gold (I mean honest industrial use) is in electronics and a few select applications ie: solar panels for the Space Station, etc. All of the rest of the demand can evaporate overnight; including the Fed purchases.
The other thing that could kick you in the rear is "what if" Barrick decides to quietly re-impliment their gold hedge programs and sell all of their production at $1,400.00/oz? What you have in that situation is dead money... and that had to have had some effect on the flatline in gold prices before the big move up... it certainly did on ABX stock back in the day.
The statement about computer chips being the new gold; IMHO, they certainly were/are. Had you have put the equal amount of cash into gold (stocks or bullion) and Apple, I'm quite sure you'd be kicking yourself for establishing the gold position now. Compare them on a chart if you don't beleive me. You could have bought Apple stock in early 2000 for under $25.00 and it slipped for the next 5 years to under $10.00. Even if you sold that same stock today, you'd be a happier man than the guy who bought gold at the same time.