keep the faith ...

Keep the Faith
By Howard Katz
Aug 25 2008 4:28PM

The month from mid-July to mid-August was a bad time for gold bugs. Support levels were broken, and bearish technical patterns completed in the HUI and XAU. But this is a time to keep perspective. My technical studies indicate that we are already past a bottom, and this shake-out will be looked back upon as a wonderful buying opportunity...

The last time that real interest rates went negative on the short end was early this century. That was the cause of the housing bubble, which led to the sub-prime crisis. Indeed, negative real interest rates are almost unheard of in economic history. Negative real rates mean that they pay you to borrow and charge you to save..."

Full article at http://www.kitco.com/ind/katz/aug252008.html