Is the Gold Rush Over?
‘Is the Gold Rush over? Gold reached some serious resistance this week as the price peaked at $1018 and has drop to $988 in the last 48 hrs. The breakpoint for gold to attain certain level of stability upwards of $1000 is actually $1034. Not hitting this price shows that consumer confidence is coming back and they believe in the dollar. While optimism is the spirit that drives the American dream, its unlikely it can overturn the damage that was done by our monetary policy. It’s no wonder why Gold has been an attractive investment for some 10,000 years. It’s limited in quantity and paper money appears to grow on trees printers. In fact, it would take 15 years for the US Treasury to print as much money as was spent on the current financial crisis. Regardless of day to day value, the fact remains that China and other countries are buying gold in massive quantities. Bernanke is preventing them from making the purchases all at once as to not drive the price of gold up too high. The day to day and even week to week changes are affected mostly by short term trading. I see the price drop as an opportunity for investors to buy gold for the long term. The Bull is long from over.
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