Dear Comrade Goldbug,
You quote:
"'Gold cannot carry on treading water at the $303 mark E Even $305 is not going to keep investors holding on to long positions,' said Kevin Crisp, the director of global commodities research at Dresdner Kleinwort Wasserstein."
Then you write:
"They've been saying stuff like this ever since $285. Can't get a direct llink to the price of gold chart but as you can see by this chart of a main gold index the price hasn't exactly been stagnant for awhile now.. Besides this sort of analyst dissing, the German Central Bank keeps talking about selling gold, when they are allowed to under the Washington Agreement of 1999, in 2004. They say they may want to sell and put some of the money into equities off all things! Yesterday the ECB made some ambiguous statement about gold not playing as important a role as a foriegn reserve as previously. I don't question the statement but the timing seems contrived perhaps. In response the POG went up markedly in NY and then even more in Asia.
I hope no one minds my bringing this stock stuff up. I feel like what's happening with gold has to do with the path of globalization, just another tribal echo. Although I'm not sure what it's saying. (other than SELL and paint the house) I suspect that IMF and ECB warnings about the current account deficit and developments such as the speech the ex-IMF prez gave at the Asian event, though never mentioned by analysts, also play a part."
Dear Comrade Goldbug,
Please note this phrase: "as investors sought a dollar-denominated sure bet for their cash." "Dollar-denominated" - the recent gold rise is all about globalization but it's the move IN to major currencies, particularly the dollar, and not any systemic fear about the dollar's worth, except in the very short term. If you're long gold, it seems to me that you are then short all local currencies except the trans-national ones.
Granted, gold is neither cash nor equities, but if you're worried about the long-term value of the dollar, you don't go into gold.
If you've made money on gold from 285 to 300, then take your profits and fund the revolution. If the fundamentals really are going to take gold to 325, you will get another shot at it. Meanwhile, the longs have warned you that they won't hang on at this psychological barrier for much time without support and you know the global capitalist consensus is bearish on gold above 300.