Mega Precious Metals Inc MPRXF

Is Gold about to breakout?

[hrattle]

A quick comparison of the psychological barrier at $2,000/oz with $1,000/oz shows a similar pattern. In early 2008 POG tested the $1,000/oz barrier - it was a big deal as all who follow gold will recall. In the end the $1,000/oz mark was hit but POG pulled back quickly and set lower highs and lower lows, indicating that the trend might be changing. Then of course 6 months later QE kicked in and POG broke the downtrend heading for $2,000/oz. This time it didn't break that barrier and the downtrend has been much longer but the pattern is very similar, with resistence about 20% below the high.

So with QE3 (or something similar) getting more likely as the US flirts with recession is gold ready to breakout and try a run for the next barrier - $3,000/oz perhaps?

[ramblersrest]

QE repeat in the US ? Congress passed QE 1 and 2 which were the real ones that juiced gold with the infusion of a couple trillion US $ . I don't think that another QE will happen as the Republicans got control of the House of Representatives in the 2010 off year elections . The Tea Party group won't pass another QE as they are on an austerity initiative to try to restrict the

[GeneralLabour]

I agree with you, but not to long ago you were indicating that gold would setlle at around $1300 and that the economy is fine and that people working at facebook and google are a window to the strength of our  economy.

[tootall123]

This post has been removed in accordance with Community Policy

[tootall123]

This post has been removed in accordance with Community Policy

[ramblersrest]

Right you are there GL . hrattle is now using our rebuttal to his prediction earlier this spring that gold had peaked in Sept 2011 and was headed for $ 1200 or thereabouts . He doesn't realize though that since then the House of Reps. have indicated that QE 3 is a non starter .  He is brilliant but a little slow... LOL

[hrattle]

The Tea Party group won't pass another QE  Congress doesn't have a say (direct official say) in QE. QE is monetary policy, congress controls fiscal policy. US fiscal policy is screwed in part because the republicans want to oust Obama. The republican party doesn't mind gambling with middle and lower class jobs. As Romney says, the waiters serving him at a $50,000/head dinner are

[hrattle]

...not to long ago... Things change - but anyway I'm just putting out what I see for discussion. My post was a question not a prediction - the $1,000/oz to $2,000/oz charts have some similarities worth noting. They have some differences too. ...people working at facebook and google are a window to the strength of our  economy. Not sure I was quite so poetic - I recall using these as an

[hrattle]

hrattle is now using our rebuttal... In your dreams maybe...I've used nothing of your rebuttal, which I recall was some nonsense about Obama declaring war on capitalism because of his father. Ignorant tosh!

[GeneralLabour]

You however did mention $1300 gold. I am still unsure of QE3, what makes you think that there will be one???

[GeneralLabour]

Glory days as in a USSR with which we had not business with, a China an India which in terms of economy didn't even exist, and NAFTA and free trade agreements. With all of these now in the equation we are seeing people in the west work more for less, constantly feeling the threat of outsourcing, particularly now that China and India and even Russia can produce high tech labor. Makes one wonder

[hrattle]

You however did mention $1300 gold. $1,300/oz gold is more likely than $3,000/oz gold. But as I said things change - in 3 months we might be talking about $1,000/oz gold - who knows. ...what makes you think that there will be one [QE3]? Because the US congress is a mess and won't provide the needed fiscal stimulus and Bernanke is rightly terrified of deflation. It should stop deflation but I

[tootall123]

This post has been removed in accordance with Community Policy

[hrattle]

...people in the west work more for less... Do they work more for less than Russians, Indians and Chinese? Do you think the Russians or Indians or Chinese also call these the glory days? ...its not roses and daisies for us... Never said it was. What capitalism since Reagan has done for "the West" is a disaster second only to what communism did for "the East". What time period

[ramblersrest]

hrattle ; you are now adopting the point of view regarding the driver of gold price you were arguing against this spring .  You were the only bear on here re; POG for 2012 . I went into the theory of the 2012 repeat of the 07 and 08 gold plateau performance etc which you totally disagreed at the time .Now you are giving my argument back and claiming

[hrattle]

...you are now adopting the point of view... Rambler you are imagining things. I'm not adopting anything. I simply pointed out a similarity in chart patterns around a psychological price barrier. If you did this in the past I don't recall. The last time we discussed this is was about ETF ponzi schemes - nothing to do with chart patterns or psychological barriers. But maybe you recollect

[GeneralLabour]

In all honesty ,when hrattle was predicing a drop in POG it did happen just not to the extent he had mentioned. Another rise in the POG seems likely,  if one only looks at europe particularly the PIGS they will notice that the only place to go is down and when its down we will only see rich stay rich and working class get poorer. What this will do to the markets and POG is evident. However

[hrattle]

Look at a chart of any market in North America from the 60's to 2007, that growth didnt look bad did it? And that included some bad times - the 70's oil crisis, the '87 black Monday crash, the dot-com bubble bursting (the NASDAQ is still down 40% from that high). Now we have the '07 financial crisis - just another boom and bust caused by uncontrolled capitalism. As rambler will

[ramblersrest]

Interesting chart . Not adjusted for inflation so we don't really know up from down , but we keep on going which is the main thing . By uncontrolled capitalism i assume you mean rampant corruption and unchecked criminal activity . That happens as we know in all systems at all levels .

[hrattle]

i assume you mean rampant corruption and unchecked criminal activity.As you say, corruption and criminal acts are inevitable, however I don't mean this. A better description is "gaming the system" but that sounds tame - listen to Chaplin's speech from "The Great Dictator" (https://www.youtube.com/watch?v=-RYlAPjyNm8&feature=related) or Douglas' speech from "

[ramblersrest]

Generally there are two classes the plodders who blindly follow  the "system" and the intelligent who invent the 'systems' . The latter subsequently use systems for their own interests and or find ways to beat the rules . Just human nature in action . Charlie's entertaining rant is missing Darwin's realism .

[hrattle]

...missing Darwin's realism. Please elaborate....