Wow, looks like all the Gold bulls are really taking advantage of the record high prices-- George Soros did anyways. What we are seeing in Gold is either the beginning of a horrifically beautiful crash, or just a pre-crash appetizer. This is what we call market impact, or lots of Fox News viewers "taking profits." I believe there will be enough morons to net out one last group of sellers at decent prices. Someone out there with some cash to burn will believe he/she is getting a great deal and buy lots of gold at $1500/ounce. As the gold bulls watch their dreams begin to crumble as prices being reaching 1400, 1300, they will only then wonder if $2000 gold isn't all that reasonable and before you know it, gold will be at $800...Soon after, $500 or lower. Don't you just love irrational markets? Hyper-inflating gold prices turned out to be wonderful hedge against hyper inflation...I rest my case.
I'll nurse my gold trades carefully, but this monster won't be taken down without a fight. I'm looking to add more to the short after price breaks through $1500 but kicks back off of it from below. We must simply wait for the pain to increase.
I'm also watching the Turkish Lira very closely. It is an extremely good deal right now verses the dollar. Goldman Sachs must be in the business of philosophizing when they aren't trading. They are not happy with Turkey and their low rates therefore they are paying to prop up the dollar against it. I surely hope Goldman isn't that stupid, hopefully they are luring in the morons who BLINDLY follow their trade calls to gain some cheap liquidity. I see the Lira becoming a very nice trade over the next few years as Turkey reacts to their inflation troubles.
Thanks yet again for visiting the blog, folks! Be careful out there, whatever you do, don't buy gold!
