What Is With All These Gold Forecasts Above $5,000 USD??
Very well respect and upstanding folks roll out gold forecasts in above $5,000 USD? Why is that??
So how do they pick these numbers? Very simply. Folks who buy gold and have enjoyed extreme profits realize that the time to sell gold is when they can transfer their gold wealth into other assets that are under valued and may pay a cash coupon. This is why when 1 gold once is near or equal to 1 Dow Jones Industrial point the gold bull market is near an end.
You should also notice that when gold does reach extreme level it mostly accompanied with depressed stock prices. Depressed stock prices is asset deflation and not asset inflation. Therefore do not get lost with the uniformed state there is no inflation and therefore gold does not have support for higher prices, it is fact that when there is no inflation and the very likely hood of deflation that gold does extremely well at protecting your wealth and purchasing power. Stock analysts want you to buy stocks not a heavy yellow metal. POINT, gold does well in both extreme deflation and inflation, it suffers in the in between muddle.
A Chart of the Dow Jones Industrial vs the Dow Jones Industrial gold ratio.
"The market always tells you what to do. It tells you: Get in. Get out. Move your stop. Close out. Stay neutral. Wait for a better chance. All these things the market is continually impressing upon you, and you must get into the frame of mind where you are in reality taking your orders from the action of the market itself -- from the tape."
- Richard D. Wyckoff
"The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market."
- George Soros
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