Monday, August 18, 2008

Is $800 Gold A Falling Knife OR An Opportunity?

"Higher demand"?

The above notice just was posted on, a popular *goldbug* website. It seems that all the end-of-the-world types are feverishly rushing to buy more precious metals at these lower prices. I guess I should have waited a few weeks before buying palladium. It's down from $390 to $285 in a month! If some of the banks I am short start to roll over, perhaps I'll buy more.

I don't have any strong feelings about gold. I see it as a tough call. It could very well take a two year break before resuming its uptrend.

UPDATE - It seems I am not the only one to have noticed strong investor demand for the metals. Read this piece here, particularly if you have a proclivity for government conspiracy theories:

The Disconnect Between Supply and Demand in Gold & Silver Markets


west coast tom. said...

Personally (and in my humble opinion) it is time to buy a Dec. 08 option or seven.


west coast total champion said...

was this pure genius or what?!!!

CaptiousNut said...

Nah...a lot of better trades in the 15 months since.

Not in my account, though.