My (former and still friend) financial advisor called me today to say he has been looking at the Perth Mint web site with an eye to buy gold when it drops as he assumes will happen due to the current consolidation. Stage 3? In addition to this others are predicting golds future based on this consolidation: http://smartmoneytracker.blogspot.com.au/2013/02/major-top-in-stocks-major-low-in-gold.html (scroll down for the Gold T-1 chart) and http://www.zerohedge.com/contributed/2013-02-21/gold-sitting-ledge-2-year-support-cliff (it's unclear what this is trying to say) So which way after consolidation is over? Personally I think endless "money printing" leaves only one option.
As Eric Sprot says The world cant be buying all the physical mine supply per annum, with no real incvrease in production and prices stay low. His conjecture is that the western central banks are selling gold into the market at an alarming rate - its the only way the numbers make sense.
I think it will go down. Also because the Fed might ease the next QE and, because the charts reflect a bigger distance between the two Bollinger Bands.
