Why the Gold Rally Has Some Feeling Cheated
by Robert Williams, Publisher
Thursday, October 8, 2009
Sorry bears, you lose. In a year-long tug-of-war over gold, the bulls just pushed the price of an ounce to a record high of $1,045.
But not everyone is rejoicing. Particularly, the gold bugs in the euro-zone and Japan. While gold hit a record high in dollar terms, the price is still 10% below its high when quoted in euros or yen.
Such an anomaly demonstrates how gold’s latest jump has more to do with the weakening greenback than anything else. In fact, should the dollar suddenly change course (gain strength), the gold rally could be short-lived.
I’ll concede, that’s unlikely. Which brings us to the more important takeaway.
If the dollar continues its slide and demand for gold ticks even higher… look out! Prices of the sought-after metal could zoom higher still. (Recall, I just made the case that gold could soon fetch $1,300 an ounce.)
That brings us to another unhappy gold investor, our very own Louis Basenese.
Remember, he’s been bearish on gold for quite some time. He even recommended going short on the shiny metal in February. (Ouch!)
However, he’s not only ready to man up to his mistake. But he’s also sharing a secret that he says will allow him to keep making bold calls… without any fear of regret, or worse, massive losses.
Ahead of the tape,
Robert Williams
Any investment contains risk. Please see our disclaimer.
One Response to “Why the Gold Rally Has Some Feeling Cheated”
Comments
By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.
Check out our selection of daily investment research:
 |
 |
In addition to once being a full-time trader of equities and equity derivatives, Robert Williams has served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution. He's also been profiled in such books as Trade with Passion and Purpose and Alexander Green's The Secret of Shelter Island. 
Why no dates on “linked” articles? Most of them seem to be a year old or irrevalent to current market conditions(especially if a chart is shown).
Leon Talley
Reply