$750 or $1,500?

by Ernie Fitzpatrick - Date: 2008-08-08 - Word Count: 293 Share This!

After a run from $250 to $1,000 and a few months in the trading range of $850-$950, gold sits at a very precarious position, as well as many commodities- can you say OIL? Anyone who is holding on to gold, silver, or precious stones at this point has considerable short term risk.  

Did I mention the election in November?   :-(

That gold will go to $1,500 is not the question. The question is will it go to $750 an ounce before going to $1,500. I'm getting out above $900 and looking to get back in in the $700 range. To hold at this point is far too dangerous.

An addage that I have followed all my life is don't worry about the first 20% (get in late) not the last 20% (miling it for a top). Enjoy the 60% ride (say from $400-$900) as it will always treat you right. A recession, which we are in but being denied by oiur government, is going to take the wind out of the sails of oil and the economy as a whole.

Of course a war (can you say Israel- Iran) or some major problem with the Olympics can change all that. Then there's inflation. It's going to keep gold from any free-fall. I'm not worried about the long term prospects for gold- just the August to November period where gold could test the $750-$775 level.

The Euro and oil bubble are going to burst and with that will come a resurgence of the US$, but not for long. In the end, the US$ is trash, fiat cash, and we're headed for a whole new denomination within 5 years most probably as we team up with the Canadian $ and the Mexican Peso.

Yep, that's how bad the US$ has become!  :-

Related Tags: israel, war, iran, recession, 500, us$, short term risk, $750 or $1

As a spiritual-futurist my commentaries and articles deal primarily with an interpretation of current events in light of macro-universal forces at play.

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