This week gold continued its slide to test support levels in place since the middle of last year. We may see a "flight to gold" as protection against the rhetoric coming out of Washington to place restrictions on the banking industry. This political rhetoric is taken seriously enough as it may stall our economic recovery. Overall, I believe the decrease in gold is more related to the strengthening dollar. The next few weeks will tell if the slide in gold is only a pause before higher-highs or a reversal of its uptrend.
Around ten years ago gold traded for $250 an ounce and was declared "dead" as an investment by the financial media. No one wanted to buy gold. Now we see an endless loop of commercials urging us to invest in gold. Further evidence the contrarian theory of investing really works.
Note: The above is for information purposes only. Any decision to buy, sell, or hold a specific investment for a portfolio should be reviewed with your own personal investment advisor.
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