Saturday, December 11, 2010

Charts of the day

I feel good to be back after got out from the country for a week especially to a place that is really cold. Feel good with lots of sunshine and humid weather here. My body feels so good with the natural moisturizer.

I picked up a few charts while on the plane. I am going to keep this post very short. I was shocked that within a short span of time, gold has became a favorite investment object. Though I think the price of gold may appreciate further in US $ or any other currencies that do not maintain fiscal discipline, it warrant some cautions.

First, the real demand has gone down. Second, people has been liquidating their gold, that tells you economic conditions have been tough(look at the scrap chart). Third, if the trend continues, demand from investment reaches 70-80%, then we will have a gold bubble. When that time comes, no matter how convincing is the argument of great store to preserve wealth. That argument will not hold.

1 comment:

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