Like Gold at $990, but LOVE It at $918
Source: GoldSeek, Rick Ackerman (6/16/09)
"We should regard bullion's tedious ups and downs over the last 18 months as quiet preparation for an explosive show of strength."
In the meantime, those who have been accumulating coins, ingots and gold shares can relax, since whatever disasters may have befallen nearly every other class of investable assets since 2006, the damage did not even touch gold. To the contrary, the metal has been a solid winner during that time, regardless of the state of the economy and the financial system, and despite mounting fears of inflation, hyperinflation or deflation.
Even crude oil at a current $70 a barrel has lagged gold by a wide margin. You could have bought six barrels of oil with an ounce of gold when both were topping out last July. Now, with gold trading well off its highs, you can buy 13 barrels. We think that ratio will triple, at least, before gold has fully discounted the ongoing destruction of the dollar.
Meanwhile, even though Comex Gold has dropped $65 since early June, the technical picture looks untroubled. We'd projected a drop in the August contract to $925.50 per ounce to begin with, and yesterday that target was very nearly reached on a low of $926.50. We were buyers there, but we'd buy even more if our target gives way and August Gold eases down to the next "Hidden Pivot": $918. Bullion bears, take note: Comex futures would need to drop a further 13%, exceeding $810 an ounce to the downside, to cause even minor damage to the bullish case on the long-term charts