That bull is Przemyslaw Radomski, who wrote an article giving five reasons why gold should go up. As if the case for new gold bugs, inflation isn't one of them. Four deal with demand and potential demand: the smart money's piling into gold; central banks are buying; an insurance company is buying bullion, which may be precedent-setting for other insurance companies; China's central may buy lots more gold to end a "reserve gap." The fifth reason deals with supply. "Gold is scarce", and is getting scarcer due to overall production declines.
Unlike other bulls, Mr. Radomski is more focused on gold stocks. The second page of his article goes into a potential breakout of the Gold Bugs Index [the HUI]; it cautions that this breakout may not occur, suggesting a near-term correction may be coming in both gold stocks and gold itself.
Although devoted to gold, the article still has a tie to the overall stock market. Radomski isn't a professional goldbug.
Subscribe to:
Post Comments (Atom)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/tny_au_en_usoz_2.gif)
No comments:
Post a Comment