Price of Gold
I just read a tweet this morning from @BusinessInsider an alarming news headline “Analyst Warns Vietnamese Citizens To ‘Get Out Of Gold Before It’s Too Late“
If you’re a gold investor, you might want to anticipate what is going to happen for the next couple of months.
In my opinion, and my only own opinion, gold has already reached its peak in 2011. If we base it from the Gold Price history, the 1-Year Gold Chart below (Jan2012-Jan2013), we can see already a downtrend channel of gold price. If the $1,600 support is broken, the next support line will be $1,550.
Further looking at its 5-Year price history, if the $1550 support line is broken, it might bring back the price to $1,000 per ounce within the next few years. It might not come true since we can’t really see what other factors might affect the price of Gold in the future. This is only a word of caution for all those gold investors. I know for a fact that some of the greatest investors, namely Jim Rogers is very bullish on gold, but I also knew some people who already lost so much on their gold investments last year, 2012. So this news in Vietnam might be a warning sign that gold may not perform well this year or the coming years ahead.
Chart Source: Kitco.com
Falling Gold Image from 123RF.com