Monday, December 7, 2009

Goodbye Yellowbrick Road?

After a strong run which surprised even the gold bugs and so-called, "experts", gold prices have finally retreated. With the dollar getting stronger, the price of gold has fallen from a record $1227.50 per oz. to $1143.50 per oz. in just a few days. That's a pretty big drop in a short time and could lead the latecomers to the gold party to think that the party is over. On the other hand, for those who never got into the game, this correction could be a second chance to get in and wait for gold to resume it's upward trend. For those who did get in early, this could also be a good time to take some profits and protect some of their gains. Either way, it should be interesting to watch gold this week as investors decide if the tide is turning against them.

2 comments:

Rich in Cincy said...

I would have to believe that anyone who puts money in this commodity at this point needs to be aware that, at these levels, it should be treated as a trade and not an investment.

It meets my definition of a bubble, as it was the talk of the barber shop last time I got my haircut, the one true "asset bubble" indicator...

Scott Wheeler said...

Good point Rich! Thanks for dropping by.