I think we're going to see Gold fall. A lot of people who have buying for last 5-6 years did so because they saw the state deficits/spending were just not sustainable. But look at Europe now. They're adressing it country by country and getting it down. Seems to be going pretty well. France, Italy, Spain are taking it a lot less tragically than Greece did. I'd want Gold if there was panic and civil wars across Europe. Important banks going bust. But these PIGS are going to turn out to be angels in disguise. They gave us a good fright. Now they're putting on more than just lipstick. That's why when I look at a Gold chart 73-10 I think: This is not where I'd want to be invested for next 10 years. Look at the nice pullback at the turn of the eighties. We're due for a pullback to 1000 pretty soon. I can't imagine spending cuts in the US will incite mass protests crippling the country due to the very capitalistic nature of the system. And it certainly helps looking at international companies and seeing they're yielding nicely. So maybe state spending cutbacks will reduce it slightly. Emerging markets will compensate.
No comments:
Post a Comment