Monday, December 21, 2009

How Low Can You Go?

Gold took another $20 hit today.

Things to watch. Will the dollar continue to show strength? Will gold stop moving higher in overseas trading sessions? If both of those things happen, there is no telling how low gold can sink. I'm not expecting interest rates to rise in the near future but if they do, gold could be down for the count.

I'm hoping for at least the $900 an ounce level. At that point, if gold stocks are sufficiently depressed, I will cautiously begin to buy back into the market. Unless it's looking really puny. Then I'll wait even longer. I'm pretty sure gold will reach and surpass its recent all time highs sometime in 2010. This could be like taking candy from a baby. You never know though. It could turn out to be a particularly vicious baby.

How low do you think gold can go at this time?

2 comments:

W.C. Varones said...

I'm going to start buying bullion around $1000. I bought GDX today.

beebsblog said...

Of course, I did most of my investing at the top. I did have some money invested in big miners that had gold as a sideline business so I'm still way above break even.

FWIW, we are near the bottom. Commercial real estate and all the liar loans are going to start crumbling in 2010. It's like the dutch boy and the dike, this time there are too many leaks.

I read on Mish's site that some ijit congressman wants to bail out all union pensions. Where are we getting all this money?