Relax. Breathe. Think. These are the actions most gold bugs need to practice if
they want to have the success they know is approaching with future gold prices.
Many investors are thwarted and concerned that gold is giving the impression of
remaining stagnant. This price interruption is repetitive and since 2001 it has
always been able to bounce back to a new higher level. If you're a naysayer,
then it's over for you, but if you're a gold bug, you're only concern is
when it will rise again. Obviously, a definite factor that would incite another
surge into gold would be something concerning the global financial economy, but
until that occurs, it may be wise to reflect upon the size and length of
previous corrections and how long it took gold to attain new highs subsequently.
Sound judgment indicates that it would take more time to approach new records,
but let's try and validate that supposition with the facts and decide if there
were any criteria in earlier recoveries that would give us some inklings that we
can use now. The precious yellow metal made its mark on September 5 at $1,895 an
ounce and up until now has dropped as low as $1,531 which occurred on December
29. This is a decline of 19.2%. To establish how long it could take to break
$1,895 once more, let's look at how long it took new highs to be reached
subsequent to previous huge corrections. It was in 2006 that following a total
decline of 22.6% and a year and four months later that gold exceeded its old
high. Then after the 2008 collapse, it was a year and six months later before
gold reached a new record. Our current correction more closely echoes the one in
2003. Subsequent to a 16.2% plunge, gold was in step with the old high seven
months after. Two months more were needed to stay above it. And, what about now?
If we were to use the same ratio from the 2003 correction and recovery, we would
be looking at something like the following. If it took 29 weeks and four days to
reach a new high after a 16.2% correction, a 19.2% pullback would take 35 weeks
and 0 days which would be on Monday, May 7, 2012. Of course, a precise date is
simply a guess considering there are other factors that are influencing gold
prices. Gold could fall under the $1,531 low if the necessity for cash and
liquidity forces large investors to resume selling. But, also, Europe and the
United States could continue their printing of money on a widespread scale and
send gold soaring within just hours. Bottom line is if we don't reach $1,900
for another four months, it's okay. Remember, a wise investor is very calm and
judgmental at a moment like this. Just contemplate the following reason for
holding strong. It has been evidenced that once gold breaks through its old
high, the current price will disappear forever which means you will never be
able to buy gold at the existing price again. Albeit apparent, let it register
in your brain. Buying at the present time at $1,600 and then observing the price
go down to something like $1,500 would not be enjoyable, but it will probably
reach $2,000 or higher before the year's over, in no way being part of the
$1,600s cycle again. Should this occur, the next four months will be the very
last time you can acquire at those levels. After that, it will be much, much
higher. If 2003 proves to be the model in our example and the rebound ratio akin
to what is going to occur, we have approximately four months to purchase as much
gold as we want before it is no longer on sale. What could happen? Maybe by this
time next year the gold price will not be under $2,000 an ounce unless, of
course, it is in the form of a different currency. Another thing you must keep
in mind is to disregard the lie about the gold market having ended. If it does
not reach $1,900 until May at least we understand the logic behind it. But when
September comes and the price is mounting persistently, you will be ready, but
they won't. Common sense tells us that a new high in the gold price is bound
to occur in the very near future simply due to the chief currencies being so
unstable as well as countries overwhelmed with debt. And, just think, they are
all fiat currencies contingent upon government fiddling and negligence.
Undeniably speaking, the crucial high could be shockingly higher than what we
could ever imagine. Prepare yourself and don't allow the naysayers to
influence your thinking with their incompetence. Gold prices will certainly rise
to extraordinary levels. Tags: Gold Prices, Latest Gold Prices, Prices Of Gold
This entry was posted on Tuesday, January 31st, 2012 at 11:24 pm and is filed
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