Gold on Correction

Gold is showing some signs of a correction. If it goes below $1000 it might be time to buy. Gold Quote for 10/29/09

Also, take a look at this video. Euro Pacific Capital Peter Schiff explains why gold is going up and the proper way to look at inflation. Mr. Schiff's notes that inflation starts with the printing of cash and that is certainly underway. Also, watch the video, which was taped in September and note the talk of gold reaching and staying at $1000 something it has done; a major concern of those debating Mr. Schiff's position.

Gold Closes on Record High in London

Gold closed at $1064 per troy ounce in London. Once again the driving force behind the precious metal's surge was the falling dollar. The American greenback dropped against the euro, driving investors towards gold.

There really seems nothing steaming the tide of the falling US dollar. As the United States pushes toward larger deficit the push out of the dollar will likely continue. The key factor in this commodity bull market and falling dollar is the presence of Asia. Never before has there be an economic power challenging the United States like China. Because of China, the historical indicators of the past are nearly null and void as their economic growth has been stunning.

Jim Rogers: Gold Could Hit $2000

Jim Rogers discussing gold four days ago. The most honest and perhaps one of a handful of the smartest guys going.

Gold Falls on Bernanke's Words

Gold is seeing a slight drop on the words from Fed Chair Bernard Bernanke's noting they might be ready to tighten dollar production. The other reason for the drop may also be simple profit taking. As gold soared along the entire week, it is natural to think some investors will start taking profits. Silver is also off its' high, but remains above $17. There is little reason to believe that the drop will change the course of the two precious metals, just a one day profit taking session.

Gold on a Run

The rampant reports of the dollar being phased out as the oil currency sent gold on an expected run today. The precious metal finished the day at $1042 per ounce. It's partner silver was right behind, going over $17 per ounce. The run came after a report that the Chinese along with other nations are working a deal that will phase the dollar out as the currency of choice for oil trade. Making things even more interesting was the fact gold was added to rumored equation.

This would of course explain the Chinese move to buy up gold and prompt their citizens to do the same. China is making a major push to become the world's number one economic power and they are succeeding. It is time for the United States to work closely with the Chinese as the two become more reliant on each others' economic stability. Interestingly enough, as these powers race in the economic world and create economic allies, the ideal of a more stable, peaceful world draws a bit closer. Nothing promotes peace more than economies which are reliant on each other.

Gold and Silver: Bear v. Bull

There still seems to be some mixed feelings as to if the gold/silver market is bullish or bearish. Indicators are mixed, leaving many scratching their heads. Here's what we do know. Gold has stayed at are near $1,000 this entire month, silver continues in the $16-17. The dollar shows little signs of life and is taking another beating against the Euro and other foreign currencies. However, on the flip side, how long before investors decide it is time to sell and take profits. This could create a self induced correction that history shows, can be sharp.

From reading and listening most believe if gold and silver continues to hold steady, then it is time to jump in and buy as that signals a sign the prices are going to remain. This really seems to the direction as so many signals (including the demands in India and China) indicate a bull market with an extended life. The best move right now might be sell, take some profits and wait. If the correction comes jump back in hard, if it does not slowly re-invest a little at a time. Remember hogs get slaughtered.