Weekend Report
by Dr Invest

"All that glitters is not gold!" Gold appears to be an attractive buy right now, but only if it rebounds in a significant way. Please remember, gold purchases are speculation and for some periods of time gold has not gone up much, proving to the "worst investment in the world". While my gold bug friends will point to the extraordinary gains in the past few years, a close look at the S&P and it's gains between 1980 and 2000 show gains that are extraordinary good. Conversely, gold prices were terribly weak between 1980 and 2000. When over laying the S&P and the Kit Gold Prices charts and reducing the lag time for gold, they almost look identical, including the flattening out of the S&P from 2000 until present and now the beginnings of Gold Prices, though lagging the market, are now flatening out into a sideways movement.

When we look at a more current gold price chart, we see gold in a downward trend. The gold bugs point out that it appears that gold is making a double bottom at the end of May, and that gold will rebound in the first part of June. Repeat after me "SPECULATION". A return to the rise in prices for gold in 2009-2010 signals a 1000 good reasons to buy gold, otherwise the continued downtrend in gold prices here in 2012 is the orderly collapse of  a "gold bubble". Look for either a breakout around 1730 or a clear downtrend after falling below 1450.



What amazes me is that whether you invest in stocks, bonds, gold, real estate, etc. people are quite dedicated to their committed investment. You would think that investing is like football with each investor rooting for his committed investment to win. This isn't the way to invest. Eventhough gold is declining in price, professional financial advisers who have a preference for gold, are saying, "BUY! BUY! BUY!".

A double-bottom may be forming in gold, but for now, whatever gold is doing is inconclusive. Charles Nenner was an analyst for Goldman Sachs, until he started his own finanical advisory firm. Charles doesn't base his analysis on current financials, but on financial cycles. Though some might call Charles Nenner as someone from the "Twlight Zone", one can't argue with the results that he has brought to financial analysis. If only for fun, I would like for you to listen to his assessment of the present market conditions. http://www.bloomberg.com/video/92684661-commodities-supercycle-is-over-real-estate-euro.html

Another interesting personality is Marc Faber. Again, gold is the topic, so listen for his analysis about gold. http://www.bloomberg.com/video/93063825-marc-faber-says-stocks-in-significant-correction.html Marc is also one of those interesting personalities, but his analysis of the present market deserves discusssion.

Have a great weekend.

(note: the above information is for entertainment purposes only and not to be used a investment advivce.)