Wednesday 21 September 2016
Is it time to buy gold?
Gold has shown great returns leaving everyone with a great question. Is it time to buy or time to sell. Daily, I have been getting worried and ready to press the sell button watching gold go near its support level down around 1305. I probably would of hit sell if it had gone to 1304! Luckily I didn't and japans central bank was a positive for gold, as well as the fed. No interest rate hike! That is only a short term move for the market I believe though. In order for me to be bullish on gold, we are going to have to get higher in the 1350s level and then break through that high around 1380. This could still be a bear market, and we could be experiencing a bear market rally. Thats what Harry Dent believes, who is a smart guy. He could prove to be incorrect with his deflation theory assuming that the fed printing trillions will not stop this when it comes. He could be right or someone like Jim Rickards could be right with their 10,000 dollar gold which seems more likely but only time will tell. I am still very skeptical of this bull market in gold, but I am heavily positioned to profit from it while being prepared to leave the market the second I believe it is going to reverse its trend to its bear market. I do believe much higher gold prices are going to come possibly up to 2500-3000 range, or higher. Yes higher, it is very likely considering we already know the reaction that central banks will do if they see any signs of deflation, which could be close considering America looks like its already in recession. They will print again and possibly go negative interest rates. I cant imagine gold going down in a negative interest rate environment. The way I view the gold sector is if your in the right stocks, you can only lose 100% of your investment, but there is potential to make 50x your money. Those odds, I like alot. I do believe gold has more room to go but we have a lot of walls to break before its in the clear bullish view so be careful and ready to sell if the market changes.
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