Tuesday, July 26, 2011

Good Time To Buy Gold?

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Short Term Bearish; Longer Term Bullish
Shorter term, Thomas Winmill of Winmill & Co. is bearish on gold and thinks we could see a bit of a pull-back after the U.S. politics over the debt ceiling gets resolved.  Longer term, he believes as long as the government continues to issue dollars, gold will continue to go higher.  He thinks we could see a correction close to one hundred dollars in the price of gold.  Myself, I think it could even get as low as 1480 from here.  From there it could go lower by another hundred dollars, but that is unlikely since we have begun the period of seasonal strength for gold.  Gold companies have underperformed the increase in the price of gold lately, but if we get a correction in the gold price during the shorter term, I will be watching for the stocks of gold companies to correct.  After that, I will be looking for them to begin a new leg up as the price of gold goes higher.  At least, that is the way I am reading the charts.

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