Gold goes up for 2008 and then rests or do we suppose that gold goes up every year for the rest of your adult lives. As the US Treasuries have had an uptrend for 30 years but never went down over the course of a year? Foolish.
Do you not see that at some point the dollar will be seen as cheap or is that impossible to comprehend/Already very large hedge fund managers seen on your TV are beginning to contemplate their points of value. Is the European currency a store of value? certainly it is not. The European currency is a house of cards. The Germans are no friend of the French and who believes anyone will come to the succor of the Italians or the Spanish. Already the bonds that link the European currency are strained. Europeans also have a demographic problem much like Americans and the Japanese.
Gold will rise for this year but it will rest unless all of you believe that the central Bankers of the world will allow gold to go up forever and ever and violate all rules of technical analysis as so many here adhere to.
No I will not sell physical, to whom would I sell it? I have far too much. A simple yield strategy of short futures against physical holdings is prudent. Enjoy the year but I ask you, how many of you have a target in place where you say I have made enough, let the rest belong to someone else. Perhaps Apple computer will double again next year and Google the same and Research in Motion. Bring back the days of AG and the greatest equity bubble in history.
You have the map for the gold market. Examine the gold indexes in the late 1970’s. The moves measured exponentially do not occur until gold reaches its terminal phase which is many years away. It is all there. Yes, we go up. Yes, we do well this year. Yes the gains in stocks will be great but it is the final phase after the rest where mining stocks become the dot com shares of the next decade. We go up, we rest, we reach unimaginable levels as the world inflates.