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30 Years of Gold
Gold’s History for 30 years. Remember we are only abut half way to the adjusted for inflation price. Having said that, demand and supply have little to do with the gold price rising above $1000 over the last month and it is much more to do with the dollar crumbling under the weight of the Fed’s heavy hand, eroding consumer confidence, inflation, and loss of prestige for the dollar around the globe. My target for gold now is about $1250 if the dollar keeps falling. Physical demand however is already waining as prices for jewelry and manufacturing are skyrocketing, we simply cannot discount the fact that a major correction for gold may come should these markets ever return to actually looking at supply and demand. The Fed must take action to defend the dollar immediately and certainly not cut rates anymore or these prices will continue to soar unchecked. OIl seems to be defying gravity and good common sense. Supplies are ample around the world for present needs, there is no significant disruption or choke-point right-now at least not anymore than usual. Demand remains high globally but already we are seeing a drop in usage as prices have climbed over $109 a bbl. Not to mention the fact that Q2 usually sees a slowdown this time of year. As soon as April crude goes off the board next week I expect crude will finally correct and the short term move will be to the downside…maybe dramatically. Then will be the time to look at buying back in for the longer term.
