Larry Edelson's latest Market Letter is out. Please do not think that I do not respect Larry, I think he is a great chartist. But! he has this thing about having predicted certain things and he will not change his mind, even if it is obvious he is wrong with one exception.
He had predicted a couple of years ago that the DOW would fall to 9,500. It didn't. Then he announced that the DOW has entered a bull market that would see it to 21,000. It did not happen. Now he predicts that the DOW will take a correction before it goes up any more.
If anything, his reading of the gold market is even murkier. His one note symphony is that gold will fall below 1,400 and maybe even lower, before it resumes its rise. He completely ignores that China buys every ounce of gold it can get below 1,600/oz.
We do not know much of the gold for sale the Chinese managed to to gobble up. What we know is that supposedly China mined 20% of its gold in the ground this last year and continues at that pace. All that gold stays in China. Hong Kong authorities report that Chinese shipments of gold through regular channels exceeded 600 tons last year and this year's figures are higher than that. The Chinese are working on establishing the Yuan as the world's reserve currency and they intend to have it backed by gold.
On another note, check out the Miss Universe winner, Miss China. Besides being one beautiful woman, she has hands that could play Liszt etudes with ease.
Monday, August 20, 2012
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