Sorry, the above was accidently posted before adding my comments. The above linked quoted the follolwing: "With gold hitting new all-time highs yesterday in dollars, euros and pounds, today King World News interviewed legendary trader Jim Sinclair and Dan Norcini to get their take on where things stand in the gold market. When Sinclair was asked about the action in gold he stated, "Gold at $1,764 is as important as gold at $524.90, and above $524.90 the gold market went into a runaway. It's the exact same setup at $1,764, but having said that $1,764 should bring in some significant supply." From a technical perspective , can any enlighten me as to why $1764 is so significant in the author's eye?
The resistance level of $524.90 has been overcome in 2006 and probably this is the next resistance level ?
The author has a significant trading background and has had mentoring from other significant traders. So there maybe a reason for his call etc. I've also heard this level referred to as being an "angel" point? I'm curious, any experts out there?
Is 1764 any relation to inflation adjusted high from 1980? I've seen similar figures quoted along with 2700 as the inflation adjusted high, depending on which country or methodology used. If it's a chart interpretation I've no idea what's happening but I think it significant that Rogers talks of price suppression and a lot pouring out of gold at that price point. The only question that my plans want answered is after the 'bubble' what will gold drop to? Back to 250ish , or 1000ish or 1500ish. Since we're at the start of the raging bull it seems that there's a floor somewhere around the last 12 months. This of course assumes that China's domestic market is happy to buy gold at prices like this since I think that will overrun western governments attempts to price fix gold.
The higher gold goes, the more supply increases as it become a more profitable exercise to mine at higher per unit extraction prices. eg. Its now worth spending say $1,000 to get 1 ounce of gold out of the ground but when prices were $500 you'd only mine the easy to get gold costing say $300 an ounce to get. You see old mines opening up and previous claims that weren't economical coming online.
