Gold Price Phase II is Here

[GoldNugget]

Gold: Phase II is Here by T. Stein / S. McIntyre posted at safehaven.com

What we can expect to see next in terms of gold price acceleration is a repeat of phase I but with a lot more volatility. Gold has run up quite a bit over the last few months and it likely needs to shake out the weak hands before moving higher. But because we are in phase II, the corrections and subsequent bounces will come a lot quicker than in phase I because the smart money is learning to buy on the dips. The very end of phase II will be when major investment banks become long-term bullish on the price of gold. We don't expect this to happen anytime soon as equities (and maybe energy) are still king on Wall Street.

Habits of central banks in Asia, the Middle East, Russia and parts of Latin America are another sign of phase II. These countries are all adding to their gold reserves as they realize the value of the holding oldest currency in the world. Phase II will morph into phase III once every central bank starts adding (instead of selling or holding) gold reserves amidst a U.S. Dollar and fiat currency crises. Finally, you know it will be time to sell when gold and silver dominate the airwaves of CNBC. If you ever attend a cocktail party and the topic of conversation is Latin American gold mines, its time to get out.

[delkulara]

"Gold has run up quite a bit over the last few months and it likely needs to shake out the weak hands before moving higher."
The weak fear a peak,
the wise see it a a streak of luck, leading to steak & potatoes.

Gold is for the bold,not the weak,by its very nature.