is the selling momentum running out of puff, page-13

Current view:



Phil,

If you think that gold can drop to $300 (historical lows)and stay there - or even go much under $580 then - to quote The Castle - you're dreamin'!

Things positively affecting the POG long term:

US$ stuff long term

Global economic uncertainty usually lead to gold as a safe harbour

Developing countries such as India have a great penchant for gold that follows in the wake of their larger affluence

Cost of mining and processing gold has gone up, meaning that marginal projects will not get funding to start 2008-2009, leading to supply not keeping up with demand if the price drops further

I can't see anything else to do than be contrary to the market if it is acting irrationally. I may lose money short term, but sanity has to prevail at some point.

Cheers