Gold Stocks’ Winter Rally-too early
In the near term gold will continue to go down. Unless one believes holiday jewelry buying is going to "trump" the Fed. It's going to take 2-3 yrs for the next golden era.
In the forthcoming Xmas spirit of giving, the Bear crystal ball sees:
A profitable commodities bubble starting as soon as Dodd-Frank is repealed. Oil & base metal derivatives coming out of the kazoo.
The USD to remain strong near term, with Fed rate hikes supporting it. Gold to remain weak near term.
As the commodities bubble is approaching burst size, the USD finally starts to crash. Accelerating the bubble blowing up even more. Gold starts a slow recover.
The commodities bubble bursts. The US economy goes into recession, along with inflation. It will make the late 1970s look like good times. USD crashes, and Gold runs strong. We can all bee gold bugs then.
But a lot of things have to happen, and it's not going to happen in just a few months. Again, 2-3 yrs out. In the meantime, there's a bubble to be played.
The Jewel of the Mind is Colored with the Hue of what it Imagines
