Tuesday, January 17, 2006

Gold Chuckles

More on gold, this time by Bill Bonner.

Gold Chuckles is the article Bonner has gifted us with.

Bill is a cogent observer of fundamental financial factors. Bill has watched and written as the world has changed over the last couple of decades. This summation of the current status of gold is an enjoyable read, and quite elucidating.

"That gold has a sense of humor is beyond question. We hear it laughing every time Alan Greenspan opens his mouth. You'll recall that Mr. Greenspan was once a close friend of gold. The two were practically bosom buddies. Greenspan wrote that gold was indispensable to an honest money system. Of course, that was before he came to head up the largest and most cocksure central bank in history. Since then, he's hardly had time for his old pal. He has new friends in very high places."

If you are considering a speculation in gold, this article may change your mind.

My personal take is that gold has started a long term bull move; that makes any counter trend bets risky. I also expect gold retracements to be sharp and brief, it will be hard to make money on the short side. Of course I could be wrong, that is why I will be careful - exercise care yourself - don't count on my current thoughts.

Do read Bill Bonner's article even if you do not plan to invest in gold, it has useful information for any speculation.


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