Gold Selling Off
February 5th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Goldbugs may want to review, Weekly Gold Chart Has Formed a Shooting Star… or Something, especially the second part about the multilane highway.
I really didn’t want to get that one right.
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(I think I posted this idea before, but not sure, last time, promise!)
Every time we have strong down day (down 200+ points by 10 am), gold sells off too. An explanation I’ve read which makes sense is that the (stock) bulls are selling some of their gold to cover their margin calls.
Buy gold on dips…?
I don’t see this as a bad thing, assuming the sell-off isn’t major. Given the dollar’s plunge, this may indicate that the dollar is stabilizing temporarily, which isn’t bad at this point.
The real key will be to see what happens when the Iranian Oil bourse opens here in a week. One way or another, things are going to change drastically with that event, either when it occurs or what the US does to prevent it.
Whether there’s a candle, highway, bourse, or whatever…you will NOT pry my GOLD from my boney fingers anytime soon.
I might consider selling my gold when the fan hits the shit… or a Donkey (well there’s one there now) but I mean a Democrat inhabits the White House.
The Dems drive the price of oil down, raise taxes, and send a wind under the dollar so it sails. So history, if it repeats itself with a Dem in the White House, might cause me to sell.
But I will not even consider selling my gold holdings until I see what unravels in Nov 2008. I won’t believe that GWB and the Cheney gang are out of the White House until there is an official announcement. And even then. Well, I am cautiously pessimistic. Imagine all of those guns trained on the black man or the white woman. Can’t have that kind of thang going down in Amerika – you know what I mean? If you don’t get what I’m saying don’t dwell on it. Its just nasty thinking.
But gold – I’m hanging REALLY LONG. My nephews might benefit from how long I’m thinking here. Ya know, an inheritance?