Tags: elias | gold | precious | price

The Golden Era Hasn't Lost Any Luster

By    |   Friday, 29 Jul 2011 07:49 AM

1600.

The above doesn't reference The White House address.

It is the current U.S. dollar value for one ounce of gold.

Three months ago, when gold traded at $1,500, I received an email from an acquaintance, whom I met while attending the Newsmax Cruise in March 2010. At that time, the price of gold was $1,100 per ounce.

My friend recalled my assessment of gold at that time: a strong buy when it was $700. She presented my advice to her spouse, a hedge-fund manager, and they purchased gold at $1,100. She was seeking advice about the future prospects for gold.

The following was my response:

Refer to the following article of mine, published by Newsmax on Jan. 7, 2011: here I provide an analysis of the underlying dynamics concerning gold.

My long term, secular view for gold is positive.

Needless to say, in the near term (weeks, months), there will be cyclical price movements in both directions.

Your particular time horizon for the funds would be the main limiting factor in your decision to possibly terminate the positions.

If you possess a short-term requirement for these funds, removing a portion of the sizable profit would be advisable.

Even if you have no immediate requirement for the funds, a partial liquidation to remove a percentage of the profits would not be detrimental.”

This analysis is well aligned with the empirical evidence over the ensuing three months.

During the first two months (May and June 2011), gold experienced short term cyclical moves, up and down, in the $1,500-$1,550 range. In the third month, July 2011, gold rose $100 from $1,500 to $1,600.

My Moneynews article referenced above, dated Jan. 7, 2011, suggests the strong possibility that gold can reach $4,000 in one decade.

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Elias
1600. The above doesn't reference The White House address. It is the current U.S. dollar value for one ounce of gold. Three months ago, when gold traded at $1,500, I received an email from an acquaintance, whom I met while attending the Newsmax Cruise in March 2010.At...
elias,gold,precious,price
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2011-49-29
Friday, 29 Jul 2011 07:49 AM
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