Sunday, January 25, 2009

Gold at 903.8USD intraday - Wall Street Journal runs a story on Gold. GDL, GDX, AUY, TNR.v, RMK.v.

Gold runs on Friday from MA200 and touched 903.8USD intraday. WSJ runs a Gold story, this time we do not take it bearish - it is an acknowledgement of mainstream growing interest.

What You Need to Know About Gold

"Gold shined in 2008. Could 2009 be as bright?
Of all the major assets -- stocks, corporate bonds, cash and others -- gold was one of last year's few standouts. While so many investments collapsed amid the turmoil, the price of an ounce of gold posted a gain of about 4.3%.
Chris Gash
So far this year, the rare metal is up about 0.7%, after a rally Friday put it back in positive territory. And longer-term concerns are emerging that aggressive, untested government policies aimed at righting the flailing economy could ultimately fuel a further rise in gold prices.
When that might happen, no one knows. But for investors who want to hedge against potential economic turmoil, "buying gold is a very good idea for 2009," says Chuck Butler, president of EverBank World Markets in St. Louis.
The case for gold is this: The government is pumping trillions of dollars into bailouts and stimulus plans, a purposefully inflationary policy aimed at reversing current deflationary pressures. If inflation results, or if the dollar weakens as the supply of dollars necessarily increases under the stimulus plans, gold is a likely winner because it hedges against inflation and fiat currencies..."
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