Replies to post #30705 on GOLDBUGS AMEX Goldbugs Index (GOLD)

[investorwisdom]

I agree with your sentiment, but the market will not care about what we want or our expectations. Nearly all the gold bugs who invested in the miners have already been ruined from the greatest miner crash and gold price divergence in history. If Miners are the leading indicator for where Gold will go next then it's headed lower, and while your miners have performed better than the averages, I don't see anything in the charts that show a clear bottom across the entire sector, in fact when I look, I see DUST setting up for a major rally on increasing volume. It will pay to be patient in this type of situation, when the bottom is finally here, you will know it and have the greatest opportunity to enter, I don't want to keep catching the falling knife all the way down, that's just insanity. Two things brought Gold up over $1300 from under $1200 recently, one was a conspiracy theory and the other was oversold technical levels. That conspiracy theory is waning and gold is falling back down today with the technical factors breaking down in tandem, as the economic numbers keep improving. I beg to ask what are the positive technical factors to support a sustained rally? Especially when the economic numbers keep pushing the general markets higher. Sure I'm holding miners and I want the price of Gold to go up, but I won't rely on conspiracy theories regardless of if they are true or not, those types of rumors have a impact on the price, but unless it's accepted by the masses or turns out to be a valid concern the effect fades relatively fast. As of now anything regarding QE or inflation is only speculation, so the argument of QE and inflation are not helping or working to support the price and the phony numbers are being accepted by short term traders and translating into a rush for the exits for Gold and a higher prices in the overall market averages. I hope and pray it's not so, that Gold can go as low as $900 but it's seems a very realistic assumption considering Jim Rogers the commodity king says no bull market has ever gone on longer than 12 years without a significant pullback. He said it would be physically impossible for Gold to continue higher without taking a breather, or at least it never happened before in history. I believe his experience and wisdom. A short term pull-back to $900 won't bankrupt most miners, only the weak and the fledgling ones. The companies with good management and those concerned with preserving capital will be fine.