Folks,
Our gold digger friend from Canada must be having second thoughts (or third or fourth) for his impassioned love for gold. This afternoon gold closed at 1193.60. I predicted this milestone way back in April 2013 when gold was trading closer to 1400 dollars, though it came much faster than my prediction. See my call about gold falling below $1200 on GoaNet here: http://www.mail-archive.com/[email protected]/msg94462.html Now that the US Fed is about to cut the cycle of "Easy Money", my guess is that gold will fall much harder ... all the way back to $600 in about 5 to 6 years. If you are considering marrying your daughter away with a bundle of gold - watch out. I am sure, those of you who paid for it at $1700 or higher, must be wondering whether a 30% haircut in USD terms was really a good form of handing out dowry! I can clearly see more pain for gold holders down the road .... What this also means is that the commodities super cycle was long over and that the US Fed just gave their long over-due signal. Major currencies that rely on commodities are surely going to get their butt kicked. Names like the Canadian Dollar and the Australian Dollar come to mind. I am pretty certain the USD will climb higher against these currencies. The INR as usual will fall against the USD regardless .... Jim F New York. Disclaimer: I am not an investment advisor and this post is not intended to be investment advice. It's meant to rub into the wounds of my gold digga friend :)
