When gold was on the way up these were two commonly cited reasons used to explain the rise in price. What is this telling us?
1.) The rally in financials is probably not the permanent bottom. In fact, tomorrow things are bound to get interesting when two of the relatively weaker financial stocks Wachovia (WB) and Washington Mutual (WM) announce their (lack of) earnings.
2.) The longer term bullish trend in gold is far from done. Adjusted for inflation, gold is still way below its all time high.
1 comments:
i think there are a lot of reasons gold could go higher in the next few years. gold usually follows oil after a lag and the ratio of gold to oil prices is historically low. we are looking at further financial panics and deflation as asset erosion continues - gold goes up in this environment.
aruba
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