As you can see, the other precious metals are not doing to well either, with gold well off its high of over $1,000 an ounce of a couple months back. While not getting much attention at the moment, it does seem that the gold bubble has burst as it returns to the price it was at a year ago. That makes sense as the run up of the price, just with oil and housing, was mostly related to people purchasing the commodity under the belief that it will always go up. Well, I guess all of this depends on where you bought in. If you bought gold a year ago, you're look at a ten percent appreciation, more or less depending on your costs, which is decent, especially in this current market. But you could have sold at well over $900. Not doing so looks kind of foolish now, and greedy.
(Graph found at Casey Research)
Well, look what happens right after I post this:
NEW YORK (AP) - Gold prices exploded Wednesday—posting the biggest one-day gain ever in dollar terms—as fears of more credit market turmoil unnerved investors and triggered a flood of safe-haven buying.Gold for December delivery rose as much as $90.40, or 11.6 percent, to $870.90 an ounce in after-hours trading on the New York Mercantile Exchange after jumping $70 to settle at $850.50 in the regular session. That was the biggest one-day price jump ever; gold's previous single-day record was a $64 gain on Jan. 29, 1980. - Breitbart
Seems that the US Government bailout of AIG spooked lots of people. I am sure the Russian stock market collapse was a contributor as well. All I can say with all the crazy movements of stocks and precious metals is that in confusion there is profit, for someone. For me, I am just taking it easy and riding this storm out, buying stock whenever I get enough money to do so.
Sell Signals on Gold - 30 January 08