The Bloom Is Off Gold
by Stephen Lendman
Gold has stood the test of time for thousands of years.
It is for now. Don't bet against it longer term. Value eventually wins out. Gold's secular bull market continues. Experts believe it has a long way to go.
Market manipulation bears full responsibility for recent market action. A previous article explained. It called gold a global thermometer. It reflects monetary, geopolitical and economic conditions. It's driven by supply and demand considerations.
It's the longstanding hedge against uncertainty. It's bought to do so against inflation, the declining value of fiat money, and disturbing global geopolitical conditions.
It has real value. It's the ultimate safe haven. It's been so for thousands of years. It's track record is unmatched.
What goes up, goes down. On the one hand, doing so reflects normal market action. On the other, much more is involved. All markets are manipulated.
Governments, central bankers, and Wall Street collude. Manipulation is longstanding. Major players profit up or down.
Gold's had a great run. Market analyst Richard Russell dates it from August 1999. Gold then cost $252 an ounce. It rose nearly eightfold before declining.
Russell calls it the most emotional of all investments. Some love it. Others hate it. Western central bankers and governments deplore it.
It's real money. It's an antidote to fiat currencies. They're created out of thin air. Money printing madness erodes their value.
Gold stood the test of time. Russell sees it eventually selling for thousands of dollars. Currently it's troubled. Prices could go a lot lower before rising.
Longtime investor Jim Rodgers owns gold. He's not selling. He's not buying more. He hasn't hedged his position. He calls 30 - 35% corrections normal.
He expects gold prices to fall further for the "foreseeable future." Eventually he expects them to go higher "over the decade." His best guess low is perhaps $1,200 an ounce. Lower still wouldn't surprise him.
From 2001 - 2007, gold rallied hugely. At the same time, the dollar plunged 41%. It's now at a three year high. At issue is how long it holds.