Gold is sneaking its way towards the $1000 barrier again for the third time :-) which is prompting as usual the gold bears to come out swinging declaring the end of the bull market for gold.
For newcomers to the gold market it's very confusing to hear ultra bearish reports from one side calling gold prices to crash, some even predicting gold to crash below the $300 mark while from the other side they're hearing ultra bullish reports calling for gold prices heading to $5000, some even predicting gold prices to top $10.000 :-)
Well, that's quite a difference and sure enough some analysts will be proven terribly wrong over the next few years..ex..
10 Fundamental Reasons To Own Gold -
1. Gold remains ultimate form of payment :-) No counter party risk :-)
2. Currency debasement :-) US Dollar losing status as world reserve currency -
3. Gold crawling back into the monetary system :-)
4. Negative real rates -
5. Falling gold supply vs increased investment demand :-)
6. Gold & Historic averages - gold should be trading above $2500 these days :-)
7. DOW/GOLD ratio points to $5.000+ gold way before 2015 :-)
8. Gold & US public debt - gold prices required to counter balance all US public debt held in foreign hands exceed the $10.000 mark
9. Large short positions - half of all central bank's gold has been leased into the market. (about 15.000 tons). Covering these short positions is not possible without catapulting gold prices to unimaginable highs :-)
10. Gold acting as safe haven in times of rising geopolitical tensions :-)
1,2 and 3 see HERE... * Gold remains ultimate form of the only real money payment :-)
* ex.. US debt levels unsustainable - lavatoriezfiatz$dollar losing status world reserve currency
* ex.. Gold prices required to counter balance all US public debt held in foreign hands exceed the $10.000 mark/oz :-)
* ex.. China, Russia calling for new world reserve real currency its only gold - the real money Standard since 1000s of years :-)
6. Gold & Historic averages
Gold should be trading above $2500 these days in order to clock new 'real' highs :-)
When experts claim gold to be trading in record high territories these days they always refer to gold's 1980 peak of $850.
Now comparing current gold prices of $950 with the old $850 high of 1980 doen't make much sense since even a chimpanzee can understand that one single dollar represented more purchasing power in 1980 than it does today.
So in order to calculate 'real' highs one has to adjust for inflation. When we take the 'official' inflation statistics then we'll see that the 1980 peak of $850 equals $2500+ today :-)
When we take into account however the more realistic inflation statistics published by John Williams at http://www.shadowstats.com then gold should clock $7000+ these days in order to reach new 'real' highs :-)
Sure enough one could argue that the official numbers are calculated by our governmentz through honest and correct methodologies but by conveniently taking out those items causing the highest inflation numbers (food and energy) since the early nineties you can fool most of the people but not for an indefinite - period of time. :-)
Conquest Resources L (TSX:CQR)fiat(CAD)$0.155 UP $0.01 (+6.90% Bid 0.13 Ask 0.155 Volume 87,993 Day's Range 0.125 - 0.155 Click for Detailed Quote Page Last Trade:13:13:36 EDT Jun-1-09
Gold still very undervalued :-) has a ways to go before it is overbought :-) compared to all printing counte rfeitzing by fed of US$ :-) the more printing of bucky the Higher Gold Price :-)
MACD has just turned UP :-) alert that this rally still has bull legs to run :-)
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