valuation, page-148

If you look at the 6 month POG chart in USD it seems that unless gold punches through and holds above $1700 dollars there could be nothing in this latest rise. I think that may be why goldies are a bit lacklustre at the moment because the new direction of gold price has not yet revealed its hand. If gold reaches 1700 and fails, it would have to fall back to sub 1550.

I am a firm believer that the global economy is a mess and is nowhere near being fixed in the near future, but unfortunately i am not so sure that this means ever increasing gold prices. Ultimately if the financial system is stuffed and what with all the etfs for gold now trading, in reality who will buy gold at these inflated prices- you cant do much with it other than store it or make jewellery. I really hope not but its quite possible this could be a bubble about to burst.

On the glass half full side it would be a big call to say an uptrend that has been in place for some 10 years- getting steeper as financial chaos ensued- has definately finished. They say the trend is your friend.

Bottom line is as i mentioned before, when it comes down to it with all the derivatives and traders playing their games who knows what the TRUE current value of gold is. Does the market have it right at +1600 or are we about to get another punch in the ribs??