Is There Danger in this Gold Run?
Source: Boris Sobolev, Seeking Alpha††(11/5/07)
...Gold may appear to be overextended but this is not the case in real terms. In fact, gold should be around $3,000/oz in order to reach its inflation adjusted highs...
...a year and a half ago gold was far more overbought time-wise and price-wise...we can expect a few more months of handsome gains before this rally in the secular gold bull market is over. Any correction at this point would be a healthy sign.
What if, however, we are wrong and gold is now, in fact, making a final spike to its all time high of $850 or higher. The aftermath, as after the top in 1980, could be severe and it would be time to sell? Is this a real possibility?
No, the situation today is completely different:...
Gold may appear to be overextended but this is not the case in real terms. In fact, gold should be around $3,000/oz in order to reach its inflation adjusted highs. Only then will there be a real reason to worry about a possible end of the gold bull market.
We reiterate that the gold bull market has a long way to go. Donít be afraid to miss the boat Ė there are many opportunities ahead. Hold your positions and buy the dips.