The gold market is much more interesting, though. Since topping at $1921.50 on September 6, gold appears to be in the early stages of a major level decline. I see from the chart in my side bar that it has now dropped below $1600, and recovered a bit this afternoon. That's a pretty dramatic 3 weeks. Gold should continue to slide for several years before it bottoms out somewhere well south of $1000 per ounce.
For more on gold, see StatsGuy and Karl Smith.
The problem with trying to figure a rational price for gold is that is has no intrinsic value - or, a least, none that makes sense in terms of pricing in a range approaching $2000. So who do you think could be getting this right - a gray-haired old man with nothing to go on but skepticism, or world-famous veteran speculator Jeremy Granthom, who bases his reasoning on supply constraint? Evidently he hasn't seen the links, above.
2 comments:
You're rocking today, jazz.
I'm so glad to know that we feel the same way about the intrinsic value of gold.
Gold bugs have always puzzled me. Mostly they seem like Glenn Beck "thinkers," meaning they are getting some type of kickback from the sale of gold and so they constantly promote the fear that drives people to buy it in self defense.
I'd rather have several year's supply of foodstuffs when the going gets really bad.
S
I have more gold on one finger than in my portfolio.
Cheers!
JzB
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