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[tria]

I have been asked by a friend whether Gold’s situation is like it was in 1980. This was my reply.

In 1980 inflation was the enemy and rising interest rates was the means to fight it which was accomplished.
In 2013 we have no inflation and any potential deflationary forces will be faught with more stimulus.
For example Putin is considering more stimulus measures, it was announced yesterday.
The same will be done the new Chinese leadership sooner or later. Once we pass the German elections even the EU may become less dogmatic if things deteriorate any further.
The Fed is always on a standby to fight deflation as always.
So I do not thing it is like 1980 but more like 1974-1976 IMHO when Gold’s price fell by 50% from $200 to $100 before rising to $850 in 1980.

Last night’s Hong Kong lows 1320 in Gold and 22.00 in Silver should be revisited one of these days in regular US trading hours and should hold till a June high IMO. In this situation trading and not investing is very profitable. For example yesterday more than $5.00 could have been made in silver futures trading with 3 trades in 24 hours or so. Till Autumn a 1320/1280-1500/1520 could be the range in Gold.

Finally do not forget that in Hong Kong trading hours, Gold reached the late Terry Laundry's lower envelope just like in 2008.

http://stockcharts.c...p...178453&r=13

Do your own DD and all that as always,

-tria