My last post that covered Gold could not have been better. I called for itleast $100 down on the day of the high and we have dropped $107 as of yesterdays low. Now what?
I have drawn a horizontal line where I feel there is support in this market, and it is in the 870 area. I do think we will bounce from there. If we don't the huge fraud of this market might finally be revealed. Regardless of what you might read, there is no correlation AT ALL between dropping stock prices and gold prices. Some of the biggest stock drops in history have been followed by huge price drops in GOLD.
I will say this though, it is a cute little fairy tale that has gotten some legs from, I know this will be hard to believe, the people who benefit the most from having it rise! It is the coin dealers and others selling GOLD that are perpetuating this fraud. It is no different from the Real Estate people who kept hyping Real Estate as it rose into the strosphere. Buy now or be priced out forever, etc..
Go ahead and buy it for whatever reasons you might have, just make sure it is not because you think the stock market will continue to decline. If you don't believe me just pull up a chart with the SP 500 at the top and the Continous Gold chart below, and look at all of the extreme decline periods. 9/11 is the only recent period where Gold happened to rise when stocks went down. There is not a consistent relationship here so do not be hoodwinked by these crooks. The best recent line I heard was there is no reason not to pay a $200 premium from the spot price when buying gold coins because we are going top $3000 anyway! I would like to walk in the studio of that dude's radio show and ........ for that discussion he had. Joe Batalia should be called Joe I will Tell you a Tale...ia. Seriously folks is anyone really that stupid that they would pay a premium of that amount on anything in the world right at this point?
Oh wait, I know, IT IS DIFFERENT THIS TIME!