by Adrian Ash, Bullion Vault
As the year comes to an end, gold in 2012 is set to underperform the US stock market for the first time since 2004...
So the world didn't end on the shortest day of 2012, as forecast by no-one beyond lazy journalists and internet frauds.
But the long bull market gold has choked its last. Or so some soothsayers claim.
Bloomberg: "Gold, [enjoying] its longest winning streak in at least nine decades, is poised to enter a bear market..."
Interactive Investor: "Is gold's bull market over? Market commentators [are] citing a tumultuous economic environment. Others say it has simply been over-bought, and as with each bull market, inevitably reach[ed] a point of resistance..."
Special Report from Money Morning
by Peter Krauth, Global Resources Specialist, Money Morning
This past March, I asked a highly successful investment advisor what he thought about gold. Since he deals almost exclusively with very high net-worth individuals, his point of view was especially intriguing.
He confided to me that many of his clients had been asking for gold and gold-related investments over the past few years. I can't say that I was surprised.
But what he told me next simply shocked me.
"Gold's much too volatile, it's too risky", he said. "Sure it's up, but I try to discourage my clients from investing in it."
It simply floored me that he thought gold was too volatile. Gold is only up 580% since it bottomed in 2001, without a single losing year to date.
by Erik McCurdy, Prometheus Market Insight
Gold closed sharply lower Friday, moving down to a new low for the downtrend from October. The decline has accelerated during the last week after breaking below support at the lower boundary of the rally from May. Technical indicators are now extremely bearish overall on the daily chart, strongly favoring a continuation of the downtrend.
by William Patalon, Money Morning
Whenever I write about gold, I can be certain of two things.
First and foremost, I know that readership will be exceptionally high. The interest in gold, silver and other precious metals is as intense as I've ever seen.
And, second, I can be sure that, in the days that follow, I'll receive a slew of e-mails, phone calls and letters from folks asking some variation of the same three questions:
- What are the chances that the federal government will confiscate my gold?
- Can I put gold in my IRA?
- And how much gold should I hold?
This as is an excerpt from the Wednesday’s premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly, as well as real time trade alerts to profit from market inefficiencies. They offer a FREE 15-day trial where you’ll receive complete access to the entire site. Coupon code (ZEN) saves you 15%.
A Dollar in decline, a 3 Year Cycle Top, and a “Dollar pummeling into the New Year” all sound wonderful for Gold. Ordinarily of course gold would be rocketing from here as the dollar collapses. For gold to drop this far while the dollar collapses is only masking the true severity of the precious metal decline.