Still many daily articles appearing substantially supporting...

Still many daily articles appearing substantially supporting increased gold price long term, along with short to medium term, dependant on various factors, including those listed below. And, whilst there is still no guarantee of further pain in gold towards a nearby bottom floor in the near term, both the depth and length of the market correction get shorter the more the following occurs :

1. The quicker circumstances dispel the current warm fuzzy feeling that all’s right with world global financial crisis averted, recovering strongly pointing to the apparent recovery in stock market due to many reporting increased profitability, much due to governments printing more money, providing projects, grants and cheap loans whilst companies shelve expansion projects, sack staff and reduce costs, all giving rise to positive market sentiment. Regardless debt levels expand, the US to face expanding their allowable multi trillion dollar Debt etc., will come back to bite them and market eventually, same for the European block when suddenly things do not appear so rosy and inflation begins to grow and even Australia allegedly currently paying well over two million a day in interest loan expense.

2. The process of strong pressure related and manipulative short selling eases and the associated flow on effect by triggering heaps of stops losses. Interesting to note most recent Diggers & Drillers article explains there were about 300,00 short gold positions in October, 2012, but as of Tuesday 19/2/13, they had dropped to 165,000 positions, and as the golf price continue to drop since then, it is likely getting closer to 1,000 short positions or less which historically has brought about significant buying and upturn due to the cheaper price of gold and lack of short positions, and then they have reason to go long ?

3. Demand for gold particularly from the like of China and India etc. Whilst articles suggest China has re-entered buying gold along with other’s, it has been fairly subdued, (although always very hard to assess short term), but given there is reason to believe their economy is healthy and growing, but perhaps not as fast as first anticipated, they too have to re-reconcile the effect of the factors mentioned in 1. Above, before they become serious about buying gold again.

As stated not my research, just a summary from my point of view, for consideration of others from many references, some which can be simply such as Kitco, other Diggers & Drillers, Top stocks etc some paid some unpaid memberships, because like so many others I suspect, I’m currently hurting too, but holding strong still wanting some comfort and support in that belief.