Lets call a spade a spade. ETF gold was designed to create a bubble. That bubble has popped in the medium term. Bubbles make money going up... And going down ... For those who create them. But real gold hasn't changed. Uptrend in place. Now, given that the the gold bubble popping helps make the US recovery thematic seem more plausible... It make sense that Bernake would try to pop it. It also makes sense that if they can't pop it enough to kill the 'real gold' uptrend, then they will get an even bigger monster haunting them in coming years in the form an' real gold' bubble. My guess is they won't be able to kill the 'real gold' uptrend. When this becomes obvious to the 'more than few', ... it will create a massive rally in real gold.
Look for a test of 1322 and even a trial of something lower. But either way, this year will see the lowest price you will get gold EVER again. Stay tuned.
SLR Price at posting:
84.5¢ Sentiment: LT Buy Disclosure: Not Held
