Over the last few years I have been saying that Gold would continue to rise in price. Over all that time, with slight corrections, it has indeed continued to rise. In part, the rise is due to the normal course of Gold during the Long Wave, in part it also reflects the fact that huge amounts of paper money tokens, and electronic, and credit money has been pumped into the economy. Over the last few years, the dollar has collapsed in value for that reason, and because of the underlying long term decline of the US economy, of which it is a symptom, for a time the Euro benefitted from that as the Chinese and Japanese intervened to print more of their currencies to keep the value down against the dollar. Now the Euro is falling too. I suggested some time ago that all of the adverts encouraging people to sell their gold were an indication that the smart money was buying as much Gold as it could, wherever it could get its hands on it. At some point when supplies dried up, and prices began to rise, prompting a far wider range of people to become buyers, the price could go parabolic.
That is basically the scenario being put forward now by Dennis Gartman, who produces the influential Gartman Letter.
“The market starts slowly and takes several years to build.
Then, in the last 10% of the time frame you get 50% of the price movement. I've seen it time after time in 35 years of doing this. And I get the sense that gold is about to do that same thing."
Gartman also feels that gold has room to run because it's something he calls the anti trade. “It’s anti dollar, anti euro and anti the British pound,” he says.
CNBC comments,
"And if you're worried that we're looking at a bubble because retail investors are driving the run in gold, don't be. According to Gartman it's largely institutional money and not money from Main Street."
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