Monday, November 8, 2010

Gold to $1600?

I believe that gold has traded in a repetitive ABCD pattern since the inception of its secular bull market in late 2001. The C wave of the pattern has characteristically concluded with a parabolic, near vertical ascent of price. We are currently in a C wave and I expect that our immediate future will witness a truly exciting and hair raising parabolic advance that will likely take gold to $1,600.

Gold's 7 Parabolic C Waves - Projection $1600


  1. I just stick with mutual funds and ETFs, and I'll tell you why. If you bet on gold, you are betting that the U.S. will turn into a Mad Max dystopian hellscape where all money and certainly all 401ks will be useless anyway. So betting on the further stability of society is the only logical path.

  2. If you bet on gold, you are betting that the U.S. will turn into a Mad Max dystopian hellscap

    Maybe, and I see your point, but you wouldn't necessarily have to expect to see a post-apocalyptic nightmare world to want gold.

    The Fed's current insane money printing might just lead to a serious loss of value of the dollar in a relatively short time, making gold appealing to many as a protection from Federal Reserve inflation (which is coming, by the way).

  3. I don't understand the whole obsession on the far right with returning to the gold standard. I do understand that being untethered from gold has allowed the U.S. to go into deficit, but I don't understand the political tactic of promoting the gold standard as the solution. The world was on a pure gold standard around the turn of the previous century, and that corresponded to the Gilded Age in the US. Now, rich people may have loved that time, but everyone else was living in an anarchic shithole.

    Also, if you look at it from a "who benefits" perspective, the people with the economic power under a gold standard are the people who control the price of gold. The people with the power under a loose standard are the people who control the printing of money. Now you cannot tell me that the same people would not be in control in both situations. In other words, it does not matter what the standard is because Goldman Sachs will control it no matter what.


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