Gold bears, where are we really going? There are some markets that I understand that valuations can be skewed and there is therefore both buying and short-selling opportunities but I don’t understand how the precious metals market is one of those.
Rather than take the near to long-term outlook think the reverse. Basic economics says that anything with a finite supply with continuous or increasing demand for it, will appreciate over time and doesn't gold and silver fit that description? Unless we find a new planet made of gold we have a finite supply on earth and with rapid global population growth, gold could appreciate to significantly higher levels from here.
With price targets on gold ranging from $1800 by the end of the year to $3000 by 2015, I don’t see much downside catalyst or sentiment for gold to stay at these levels or much lower. Now I will concede that gold will see weakness if the dollar strengthens significantly but like I said before basic economics point to higher gold. So my question lies in why are there Long-term gold bears in the market? And if you are one please post a comment below so I can understand your reasoning and so we can both learn. As far as today’s price action I would say that the bears won the battle but not the war.
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