A LONG-TERM LOOK AT GOLD PRICES
Today’s chart provides some long-term perspective in regards to the gold market. As today’s chart illustrates, gold has been in a strong bull market since 2001. The pace of that upward trend increased beginning in mid-2005. Following the financial crisis of late 2008, gold surged once again. While gold made another record high today, it still trades significantly below resistance (red line) of its upward sloping trend channel. In the end, with gold currently trading near $1,250 per ounce, gold has more than quadrupled in price during its nine-year bull market.
Notes:
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I’ll tell you what the long term trend in the price of gold is: It will rise till we figure out how to do money properly then it will fall to its mere commodity value. Only the true barbarians will be left using it for money. Still, it’s wise to hedge so have some gold and maybe some deerskin clothes too.
The barbaric relic comment is related to the “gold standard”, not ownership of gold itself. fyi.
Thanks but I arrived at the conclusion that gold as money is barbaric in either case. Conventional paper or electronic money is barbaric too except in the case perhaps of government money. But that makes sense since government IS force and force is generally considered barbaric.
My thanks to my fairly faithful one star voter. Either you are attempting to correct my thinking, although in a crude way or you are evidence that what I advocate is gaining traction. Two quotes:
“Strike a scoffer and the naive may become shrewd, but reprove one who has understanding and he will gain knowledge.” Proverbs 19:25
“First they ignore you, then they ridicule you, then they fight you, then you win.” Mahatma Gandhi.
Gold Fundamentals:
Under ground miners 2009 – 2500 tonnes
Above ground miners – 2009 – 1500 tonnes
Jan.1st 2010 Surplus – 500 tonnes
GLD Technicals:
First high in December = 185 million shares traded
Second high May 14th = 158 million shares traded
Last high June 18th = 75 million shares traded
People are coming into the store, nobody’s there, and they’re paying higher prices anyway.
We’ll see 200 down before 50 up.
LOL. Any time you say anything negative at all about gold, the “religious fundamentalists” come out to cry, and one star you, or junk you (on ZH).
You’d think that people would just make the argument of why gold should continue it’s historic run up on minimal volume within a rising wedge.
But instead, all you get is some people crying and going “goled bitchez! We’ll be Zimbabwe next week! The sky is falling ,the sky is falling!”