GOLD forecast.Thursday Mar 07/2013

Gold is in a shaky boat. The Geometric indicators are pointing towards a huge correction. I see Gold slip towards $1430 pretty soon. Right now it is trading at $1577. It will go to $1541 then to $1524, once $1524 is broken then there will be a waterfall like drop in Gold price, rushing to reach $1430 even perhaps $1310.

 

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3 thoughts on “GOLD forecast.Thursday Mar 07/2013

  1. Historically gold has experienced a steady rise, increasing from about $250 an ounce to about over $1,500 in recent days. A considerate majority of investors considered gold to be the best long-term investment, at times recommended over investments in real estate, stocks, or bonds. Than being said, if you are looking to expand your portfolio, you might want to look into investing in gold. However, keep in mind the cost of mining gold follows the price of gold; as mining firms have bid up machine prices and countries with plenty of gold underground have raised the royalties they charge to miners (qtd. Dudas, NBC News). On the other hand if US continue to print trillions of dollars just to meet obligations, the purchasing power of the dollar will surely fall. When the world gets off the petro dollar the value of the dollar will plummet. Stuff will require more dollars to purchase, including gold.
    ETF companies trade in gold derivatives that are meant to simulate actual market price for gold. The company is publicly traded making it easy to buy and sell ownership of the company. However, while these investments are similar to stocks, returns are taxed at the higher rates for the capital gains.
    I suggest discussing your personal financial strategy with a professional and if gold is not something you might be interested in investing, there are plenty of other opportunities in 2013. Remember, a successful investor will make the most profit in the hardest of times. With recession opportunities arise for the witty and bold!

    • Dear Carmen,

      First of all I wanted to thank you for being interested into one of my posts and taking your time to write a comment.

      Second I must say that I agree with you, Gold is one of the best long-term investments in the world, considering the economic mess which has been created over the past decade, in fact I think Gold will go up to $3000 or even $5000 in the next few years under certain conditions, but in order for that to happen everything must get super ugly. Especially with the United States, it must default… However the U.S economy on the surface is acting very strong right now, thus holding its ground with the strength of Dollar and its reputation with the countries or organizations that has lent money to them.

      Here are some statistics. Gold was trading at $251. 70 around 8/31/1999, then it went up to $1,920.80 on 9/6/2011. That is a tremendous move. The recent drop from the peak hasn’t even hit the Fibonacci Retracement number of 23.6%. Usual Before a trend moves back up it hits (F R) 38.2% level at least (in most cases) which is around $1,282 for Gold. If Gold doesn’t go up then forget about all the ETFs they will not move a notch since they all follow the movement of Gold itself. This year will be a year for the Dow and SPX to shine. 🙂

      In my opinion the real question is should we invest against the United States? Throughout the history, U.S has always got out of its problems, could they come out of this one very strong? If so then there is no chance for Gold to hit $3000 or $5000 mark.

      Never the less, history is in the making and we all shall be its young observers.

      Very humbly

      Samim Amini

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