As the stock market is collapsing we are left with the question what will win out, Paper or Metal.
What I expect from Gold this year.
2010 will be the year of gold. We are having a dollar rally right now, but once America starts getting hit with whats going on all over the world that will end. I think we will see gold reach a low of 700 and a high of 2000.
Euro is collapsing. This causes a dollar bump.
gold → $750 early in the year, panic into gold later → $1350.
Gold has formed a long term cup with handle pattern, which means it should take off again to new highs. Still gotta be careful with it though, in case the pattern fails.
The sky is falling, and you should buy gold when it gets back to $1100 and then bury it in your back yard. Ten years from now you’ll either be rich or gold will be back below $700. Depends on the handle of the spoon in the pattern, I guess.
[quote]yorik wrote:
Gold has formed a long term cup with handle pattern, which means it should take off again to new highs. Still gotta be careful with it though, in case the pattern fails.[/quote]
Gold won’t collapse until they pull the excess money out of the markets with very high interests rates. If they do that all the service sector jobs the stimulus “created” will vanish.
What do you think government will do, the responsible thing and let the jobs collapse so the free market can rebuild or do you think the government will try and force more money into the system when the stimulus wears off.
Now this does not mean we won’t see something like last year where it sells off fast then bounces right back.