Time to Buy Gold
Source: Peter Graaf, Seeking Alpha (5/19/08)
Even a large number of analysts are providing their clients with erroneous advice, by telling them to ‘wait for a bottom.’ Many of these clients could well be facing the problem of looking back ruefully at the bottom, long after it is in place.
In order for gold to drop, here are some of the things that need to happen:
1) Several major gold discoveries need to be made in an area of the world where there are no rigid government regulations and no environmentalist groups, to slow down the building of a mine.
2) South Africa needs to rapidly solve its power shortages.
3) The rest of Africa needs to be able to supply ample power to the mines that are currently having problems obtaining enough power.
4) Chinese people need to stop moving up from lower classes into the middle class, and must stop spending money on gold jewelry.
5) The Chi-Coms need to stop buying gold for the treasury. (Currently almost all of the gold mined in China, remains inside the country).
6) The Russian government needs to stop buying gold for the treasury. (Russia is reaping the benefits of high oil and gas prices, and has nothing better to convert that money into than gold)...