Gold, stock market, investing

Nothing confirmed yet however, the ratio charts of the general market compared to the action in the price of bullion (page 6 and 7 at link below) are exhibiting bottoming characteristics. Along with other charts at the same link, I am now inclined to bide my time on investments in gold and related mining companies.

Once again. Nothing confirmed so hedge your bets. Unless we get a convincing breakout above 1300 for the price of bullion, gold may be due for a rest.

I am acutely aware of the real possibility of sovereign bankruptcy in any number of countries. So I am not divesting my bullion holdings. I have nonetheless significantly curtailed my exposure to mining stocks and may cut more. Eventually, I’ll consider reducing my exposure to paper gold too.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3585763

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One Response to “Gold, stock market, investing”

  1. David W. Lincoln Says:

    Guido, since Daniel Hannan wrote on his blog on August 19 about Brussels muscling the London Hedge Funds sector, there has been a debate about Great Britain leaving the EU, and revamping the Commonwealth.

    Do you know about U of Cardiff Professor Douglas Coupland? This proposal
    was sent in to him, but first the url to put things into context: http://blogs.reuters.com/great-debate-uk/2010/08/25/waiting-for-the-other-shoe-to-drop/?pending=1&cp=0#comment-11829

    Professor Copeland,

    I agree with most of the sentiments in your blog, however, I would like to take the argument one phase further forward.

    I believe the UK (England)is in a fantastic position to push for greater financial alignment in the commonwealth.

    I agree the US bond yields are unrealistic at this stage and one day the penny or cent will drop that the US with 13 trillions of debt is indeed unable to retain the position of number one world reserve currency.

    My strategy would be for the commonwealth to establish a free trade zone between member states and the UK to resurrect the ‘Sterling Area’ with all commonwealth countries looking to partnership being seen as equal players, unlike when Great Britain was Kingpin.

    Most already have deposits with the Bank of England so we are not talking about anything unnatural here.

    The sterling area would be backed by English Law, London as the financial hub of the world,the commodities of Australia, Canada, NZ and the population of rising India.

    Japan I believe would be keen to associate itself to avoid the Chinese tsunami of wealth creation and commerce. There has already been leaked stories that they would join the commonwealth.Denmark would join as well as Norway.

    This would take the heat out of America and the dollar and allow them to take a rest and get their act together again.

    I can see the Germans pegging their own ccy (DM)to the Sterling, this would allow them to leave the EURO and for Club Med to devalue by 40% which is required.

    I firmly believe the only way out of the mess we have and will pass on is to be robust in trade as we have always been. Moving away from the EUSSR constrictions
    it is political now not trade. As I suspect the next move will be to give Russia some access to joining to counter the UK’s move to bring Turkey into the EU. By creating the financial commonwealth free trade zone we could include Turkey thus avoiding upsetting Germany and France.

    Your comments n this would be highly valued & appreciated.

    Your views on this are most welcome too, Guido.

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