Gold Price Could Crash... What Should I Do?

Commodities / Gold and Silver 2011 Aug 17, 2011 - 06:32 AM GMT

The new concern for contrarian gold owners: After watching the yellow metal soar from $1,500 to $1,800 per ounce, we're hearing how gold is "stretched" to the upside... and has become an increasingly popular asset.

As Steve detailed last week, those concerns are valid... and gold is likely to go through a sharp correction. After all, markets are like runners. They can't run flat out in one direction without taking a breather. But don't get too concerned about a $100-per-ounce move here. Remember the "long view"...

Gold is rising because Western governments have made incredible, unrealistic promises to their citizens... and have taken on incredible debts in hopes of paying for them. The only way to pay these debts is with debased, devalued paper money. "Real money," gold, climbs as a result. It's a near-lock to register its 11th consecutive year of gains.

While keeping these fundamentals in mind, we look at the big, long-term uptrend and remind everyone: "Sure, gold could correct soon. It could correct hundreds of dollars per ounce and still remain in the cozy confines of its uptrend. If it does correct down to, say, $1,400, we'll buy more."

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Comments

Ernie Messerschmidt
17 Aug 11, 15:10

Gold hogwash

"Gold is rising because Western governments have made incredible, unrealistic promises to their citizens... and have taken on incredible debts in hopes of paying for them."

What hogwash. People have paid for their social security. The medical care bill in this country is twice high as in other advanced countries because it is a cash cow for big pharma and big insurance. Gold is rising because the criminal banking system collapsed and took the economy with it after being bailed out to the tune of trillions, and is still insolvent. This criminal banking system is the main cause of an inflated money supply, as they spewed out trillions in fraudulent hyper-leveraged garbage and then magically got it turned into real money by the Fed. Add to that the useless as tits on a boar military that occupies the world and can't even protect this one from an attack like 911 from an "ally" or like the Mexican invasion and sucks up half the Federal budget. Because . . . the predatory oligarchs that run the country have so much money they don't have anything else to do with it but buy gold and wait for the country and currency to crash. Spending on social programs is not the main problem. We need more spending on things like a jobs programs to take care of the 20% real unemployment. Hoover already tried austerity.

Eleanor Maw
12 Sep 11, 01:41

Gold crash

Gold will crash with in the next few years and when it does the greedy will fall flat on their faces and the rest of us will have one hell of a good laugh.

Pineapple
13 Sep 11, 01:15

gold crash

Missed the gold bull market did you Eleanor.Tough luck...

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