AppId is over the quota 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 under Gold Price. You can follow any
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