Don't count on gold reversing course following a top as it did in 1980. The financial system didn't blow up in 1980-1981 and so a reversal in gold as a commodity made sense. But the financial system and all the world's currencies are in ruins and will need a new anchor shortly, the other nations will demand it or will find other ways to trade around the USD. China is currently doing that by setting up separate deals with nations to either contract to buy their hard assets or make those countries favored trading partners. Right now Brazil and China have a deal to trade primarily in their currencies, and not the US dollar. Give me a good reason why this won't accelerate in months/years to come.
If anything, gold will reach a new high and maintain close to that as gold is used to help reanchor the world's bogus fiat systems. It took 38 years for the other nations to finally figure out that the only one winning that game was the one with the world's reserve currency. And up to 2008 it was a shutout into the top of the 9th inning. Gold, and possibly some other key commodities such as oil will be used to anchor a new type of international currency in the years to come. It could still be the US dollar too. Sinclair has been predicting this revised Federal gold certificate ratio for the past 5 years. Back then his idea was considered nuts by all the usual suspects. But, today it doesn't seem so far fetched. The thoughts of the $USD remaining as the world's reserve "fiat" currency for the next 20-30 years as predicted by most 5 years ago, seem very far fetched today in light of the tens of trillions in credit/money that will be created in the next few years. The world is not going to stand for a debased fiat currency for even 5 years longer that only benefits a few countries. Many examples in the link below of what the world has been doing to start shifting financial power. Note that Germany and Dubai are recalling all of their western held gold back home. Can that be any more plain? They are just the first. I know if I were the country who bought the gold, having it listed on both my books and the seller's books with the seller having physical possession just wouldn't cut it in today's tumbling fiat world.
I believe gold is the #1 purchase by hedge funds. gurufocus.com shows some new purchases by select hedge fund managers (I believe Paulson made $3 b or so last year), and gld & gold stock companies.
Toquieville's Jean Marie has always had a 10% or so stake in gold bullion, in his non-gold mutual funds and private accounts. Jean Marie talks about it whenever he is on wealthtracks.com or any of the mainstream publications. Jim Grant also has a big stake in gold....
COINB0Y
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If anything, gold will reach a new high and maintain close to that as gold is used to help reanchor the world's bogus fiat systems. It took 38 years for the other nations to finally figure out that the only one winning that game was the one with the world's reserve currency. And up to 2008 it was a shutout into the top of the 9th inning. Gold, and possibly some other key commodities such as oil will be used to anchor a new type of international currency in the years to come. It could still be the US dollar too. Sinclair has been predicting this revised Federal gold certificate ratio for the past 5 years. Back then his idea was considered nuts by all the usual suspects. But, today it doesn't seem so far fetched. The thoughts of the $USD remaining as the world's reserve "fiat" currency for the next 20-30 years as predicted by most 5 years ago, seem very far fetched today in light of the tens of trillions in credit/money that will be created in the next few years. The world is not going to stand for a debased fiat currency for even 5 years longer that only benefits a few countries. Many examples in the link below of what the world has been doing to start shifting financial power. Note that Germany and Dubai are recalling all of their western held gold back home. Can that be any more plain? They are just the first. I know if I were the country who bought the gold, having it listed on both my books and the seller's books with the seller having physical possession just wouldn't cut it in today's tumbling fiat world.
Jim Willie on world paradigm shift to counter effects of the USD/USTB
roadrunner
Toquieville's Jean Marie has always had a 10% or so stake in gold bullion, in his non-gold mutual funds and private accounts. Jean Marie talks about it whenever he is on wealthtracks.com or any of the mainstream publications. Jim Grant also has a big stake in gold....
Reference: Coin Links