chuk
The powers that be will take the price of gold down. It is likely to be their best chance to get gold under USD1100 before the change of government in India is effected and restores India as the number one gold consuming nation. I expect the drops will be in smaller increments than in 2013 and there may appear to be some stability for a few days to suck people in but its just there as a mirage, as was the rise in the GDX/GDXJ/HUI in the last few days.
The fighting in Ukraine (and all the middle east instability) is not able to make the POG run higher.
As for Larry Edelson, he has been talking about a bottoming process, which could be a bit under USD1000/ounce or as high as USD1250. This is a very wide range. Around July/August 2013 he briefly turned bullish and recommended his subscribers take very small initial positions in the gold sector but soon changed his mind. He may do that again this year.
Martin Armstrong with whom Edelson worked has not turned bullish on gold, but sees a bullish cycle coming (second half of 2015?, but I can not recall if that time is correct).
The POG is reliant on demand from Chindia/Asians and Arabs, and the growth of their incomes is crucial in this. If investor demand takes off again in the US it will because of the demonstration effect of rising price caused by demand from Asia. People in the "west" are not presently affected by inflation to any extent and prefer to invest in income generating assets or collectables (the very rich). In 2012 Japan was an exporter of gold to Hong Kong when the POG was over USD1600.
loki (I hope that the POG gold hold up, but my expectation is otherwise in the short term - good luck all.)
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