Tuesday, September 22, 2009

Another day of $1000 Gold

Every day Gold hangs around $1000 is another day this important psychological price point is burned into investors' and speculators' brains. Humans can be emotional and irrational creatures when it comes to round numbers. Every day spent above or at $1000/oz increases the odds that we are about to have a strong break to the upside in the nominal Gold price, regardless of what the U.S. Dollar does.

Once we get this break higher, $1000 Gold will become the new floor for Gold prices for a long time to come. We could break out a few hundred dollar and then come back and re-test the $1000 level, but once this breakout occurs, sub-$1000 Gold will be a thing of the past.

The strength of Gold here is unmistakable relative to other asset classes. It has outperformed the U.S. Dollar, the stock market, real estate and many commodities over the last decade. Gold is an international debt-free currency. Gold is money and cash will be king over the next decade as other asset classes experience price implosions (current intermediate-term irrational exuberance aside).

Wikinvest Wire