Friday, September 11, 2009

More On Today's Milestone in the Price of Gold

To begin with, the record weekly close over $1000 will get the attention of technically oriented investment funds this weekend. Expect heavy follow-through buying next week, barring some kind of unforeseen heavy intervention in the bullion market by the Fed/Obama Administration, in a desperate attempt to support the U.S. dollar.

I want to bring your attention to an excellent analysis posted on, in which the author presents an excellent case to be made that the public has yet to join in on the gold rally based on the fact that the assets in the Rydex Precious Metals fund have not increased at all during this move over $1000. Here, the link to his work and it's a must-read:

Gold Is Going Much Higher While the Public Snores


  1. Dave,
    perfect capture of what I was saying, NOBODY is in gold so please stop with the bubble talk! I can never understabd the viceral reaction to gold as an investment, most people are angry and hate gold. Hmmm, I wonder why? No games and no way to fake it I guess bothers some folks.

  2. My buddy and I were talking about that on the golf course today. We can't believe that the public in general still doesn't understand the precious metals market.

    I see it all the time in presentations to potential clients for my fund. The public just doesn't understand how close the dollar is to collapsing.