Watching the gold charts can be entertaining, however reading the news and investment commentary about gold, precious metals and stocks trumps the charts’ amusement factor. It’s interesting to read the opposing views of the marketplace. Some are Negative Nellies and others are Optimistic Ollies.
For example, take a look at this Negative Nellie article: Gold and copper slump on China worries where the author talks about China’s activities to help their economic situation and how that helps our dollar and hurts the metals markets. Could it be the author is right or were his comments self-serving?
Taking a different viewpoint, another article, Gold: Weaker dollar to help raise gold prices, suggests gold could continue upward. “On expectations of lower interest rate in the US, the dollar is expected to weaken further. Weakness in the dollar will help gold prices as a weaker dollar will make the yellow metal look attractive for holders of other currencies. In 2009, the rise in gold prices was mainly backed by the weakness in the dollar. Gold prices could continue to witness an uptrend in prices and the bullish phase in the yellow metal could continue.”
Likewise in the commentaries, some people are bearish and some continue to be optimistic about the metals markets.
In Stocks are at THE Critical Line, this gentleman takes issue with the market bulls on several fronts. He thinks neither stocks nor metals should be considered bullish. For an interesting spin, he looks at the markets in “Gold Dollars” and shows how they performed in relation to each other. He concludes his analysis with “Given that Gold is in a corrective mode, I expect we’ll see Gold fall and stocks hold on or possibly grind a littler higher. However, even stocks are beginning to show major signs of duress.”
Now, again, let’s look at the other side. This commentary, Financial Elite’s Behaviour Has Opened Floodgates for Gold, takes issue with the economic climate and the political actions of our elected and appointed officials. However, he draws the semi-optimistic conclusion, ” We may not like what has happened, and still is happening, with the behavior of our politicians and the country’s financial elite but we can, and should, prepare now for the financial rewards their actions (and inaction) will bring our way. Just prepare for the inevitable, be patient as it unfolds and then enjoy your new found prosperity.”
So, who’s right? The Negative Nellies or the Optimistic Ollies?
Which are you?