Friday, February 03, 2006

 

Gold 'Still Well Off High Of $2,100'

Reuters reports on the strong bull market for gold. "Gold's 37 percent rise in six months to 25-year highs, far from a price-bubble ready to pop, will continue upwards on renewed fund enthusiasm, analysts said. The bull market may attract even more new money in the coming years, with potential for bigger price spikes, they said."

"'Like a gorilla with a gun, gold can go anywhere it wants,' said Peter Hillyard, head of metals sales, ANZ Investment Bank."

"Analysts say gold has room to go much higher. It is still well off January 1980's all-time high of $850, a level which would now stand at $2,100 after adjusting for inflation."

"'I do not see any bubble on the gold market. Prices have been firmly supported by fundamentals. Most notably, changes in global liquidity have put upward pressure on prices,' said Michael Widmer, analyst at Macquarie Bank Ltd."

"The safe-haven metal is expected to continue attracting buying due to political unrest, notably the Middle East, on worries about inflation and economic growth, instability in currency markets and hopes of buying by central banks. Iran's nuclear ambitions and the victory of Hamas, the Islamic militant group, in Palestine elections are the latest hot topics, prompting many investors to take refuge in gold."

"Sharp rises in gold holdings at ETFs has helped improve sentiment toward bullion, with some arguing the inflows reflect long-term investment and were not likely to be reversed in a period of weaker prices. Gold funds have accumulated more than 440 tonnes now, which would equate to the 12th largest holding by central bank."

Comments:
"'I do not see any bubble on the gold market. Prices have been firmly supported by fundamentals. Most notably, changes in global liquidity have put upward pressure on prices,' said Michael Widmer, analyst at Macquarie Bank Ltd."

I agree, I can find no reason to think that Gold is in any type of bubble. The fundamental's are to strong across the board for PM's in general.(IMO)
 
last bull market saw real oil go up 1,093% and real silver up 2,578%.
 
Good piece from gold-eagle. Facts, common sence. Things nost of us know, but it's good to re-read from time to time. We have a long way to go!


http://www.gold-eagle.com/editorials_05/baltin020206.html
 
another reuters article.

Silver ETF no threat to mining stocks - analysts
 
Thanks wmbz. Thanks a great article. I So hope he's right.
 
He's right... there's no public fascination with PMs right now. When dinner parties are abuzz with the talk of sheople's killer PM investments, that'll be the time to bail!
 
Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?