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Gold is priced in dollars. In my opinion it all has to do with the value of the dollar.

If it falls further, gold will rise further. But if the dollar reverses higher (e.g., due to stronger than expected GDP numbers in a couple of weeks), then gold price will go much lower.

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Mike Kammen

Michael's last comment is way too simplistic. Corn and Wheat are priced in dollars and have barely moved this year while Natural. Inflation is a dynamic process which affects different markets at different points in time depending upon supply and demand and speculative activity. Look back to the big gold run in 2005-2006 and you'll see gold actually rallied strongly with a strongly rising $USD. Gold is gold.

Mike Kammen

Sorry - I didn't complete my comment on Natural Gas. Natural Gas collapsed for most of this year while the dollar was falling.

Steven Chase

From a sentiment standpoint, I keep hearing about how gold is overvalued right now. Everywhere I turn, I hear "gold shouldn't be this high!" Which means, there are PLENTY of people shorting this trend. Which means, there is ample fuel to push gold much higher.

From a technical standpoint, the chart looks awesome with the neckline of a 2 year head and shoulders pattern recently broken.

From a fundamentals standpoint, central banks are JUST beginning to raise rates. Case in point, Australia. Our debt levels continue to grow and the $USD continues to falter because of these debt levels.

What's not to like about Gold?

David Spence

Everything I hear or read about is how inflation is coming big, and gold is going to skyrocket. Which, IMHO, means it will drop. There are currently 651 TRILLION in derivatives and other imaginary dollars, imploding/disappearing. It will be many years before we have inflation. The govt. no longer prints money, they borrow it from the private British bank called the Federal Reserve, at interest. But they are not doing even that. They are issueing Treasury Bonds. Simply borrowing the money. Since we are headed for massive deflation, would it not make more sense to simply print money to pay off the debts? Instead, they borrow to add to the insane debt. They do not represent or serve the US public.


gold is rather like art, its value in the eye of the beholder (supply/demand) nobody needs either but they give pleasure. So why do gold bugs want to bury it in their back yard?
Those citing inflation expectations and charts from 2002 - 2009 do not have any plausible explanation for the long drought from 1980 - 2002 when gold lingered around $250 while prices for everything else rose steadily. Stocks went from 800 to 9950.

corey varner

None of you are taking into consideration what will REALLY send gold (& especially silver) to the moon. When the criminal shorting of these markets become known on top if how little ETF's are actually holding of the metal..it's going to take your breath away. And if you have no idea what I am talking about, you must do some research!!!


Gold has bull and bear markets, just like stocks! The long gold bear correlated well with the stock bull (1982-2000). Now gold is in a bull market, and stocks ...

Robert Freudenberg

Curiosity begets me when I read articles such as those shown above, with a chart to back it up yet, all based on what???
Where is the backup for the statements? As shown, they are worthless, and it bothers me that people trust this "knowledge", just because it is written. The best analysts wouuld not make predictions such as shown. I only hope that the history of what is written above will be remembered by folks that trusted you.
While I cannot say which way gold will go, I do read many more reasons for the above to be false, Egg: China and Russia buying it in while Central Banks reduce their holdings. The US Mint not being able to satisfy demand. And those that have invested in precious metals have had gains far above the general gains (and sore losses), of the market. This all is totally ignored in the article. Why???


The argumentation behind the starting gold price estimate and the graph is the most hilarious stupidity I came across in many years. Is it really possible that someone publishing such a thing can be considered a serious market comentator???

And how about this: (has been sent out privately from a major news service)

Oct.06 09
I had a tip on Saturday that on or before October 25th we will have a major global market downturn and a significant worldwide banking problems due to a total collapse of the dollar. Toda gold hit an all time high on rumours that OPEC are oing to drop the dollar as a pricing mechanism.
Check: www.indenpendent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

I also heard that it is not safe to have anything in the stock markets as these will be ‘frozen out’ whatever that means.
Also see: http://news.goldseek.com/CliveMound/1254841200.php

The official line is that the dollar will be replaced by 2018 but all the rumours are that this is going to happen before Christmas 2009 and that gold will be 50% of the SDR the IMF will use to price oil.

Just giving you heads up etc. Gold may still take a hit if JOPM or Goldman can get their hands on enough physical metal to keep their short position open, but everything is pointing to them having to default on their gold shorts and this would send the price to the moon. If it does take a hit it will be very short lived. I have no doubt that we are now entering a very dangerous phase of this depression and the alarms are going off all over the place apart from in the controlled media.

Then follows the comment from Rob Kirby:

Allegedly, the BOYZ were told that they have 5 days of grace to come up with the real goods. The results are obvious.
There is less then 600 metric tons of gold available globally at this point in time for possible sale and ½ of it is locked and cannot be moved-
The delivery commitments are multiple of this.
The battle is on and the first guys are being taken out of the room with bullet holes in their forehead.
There might be one last great concerted effort by the BOYZ to knock back the price. But even they know by now that they have lost control and that their construct of lies, fraud and deceit is coming down-
It will get – no, it is – very, very, very ugly.
On top of this we shall see the collapse of some Gulf States as well as some major US and European banks hitting the skids.
There is very little Au that is available globally and it has been blocked from being sold to he BOYZ. JPM/Chase is scrambling at every refinery to get their hands onto the product. They even go to mines, no, as we call it ‘going to the pit to get it to the cage’ but they don’t have the required access and are being strung out big time.


gold and silver report


Link should read:

Gold Coins

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Steve Netwriter

The US$ has so far dropped to a trough of ~1260.

So they were wrong.

I am not surprised one bit.
Why would even bother listening to that type of "analyst"?

Puma Clyde

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