Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold on verge of historic breakout?"
Author: Peter Brimelow
Main Points: Gold closed out Friday at $956.50 an ounce, so where does it go from here?
According to Martin Pring, "Gold could be on the verge of a historical breakout. Watch that $990-1,000 area like a hawk."
The price of gold has seen resistance of late, being stuck in a range from the upper $890s to lower $900s. Once that range was broken, gold has maintained a consistent rally with no end in sight.
"I think we are very close to the beginning of a hyperinflationary spiral," said FGMR's James Turk. "If I am right ... there obviously is an exceptional opportunity to load up by buying gold." Turk later adds: "One of these days (and there's at least a 50% chance now is that time), gold will just keep rising."
Analysis: It appears that gold has broken free of the dead weight of retail gold, which has prevented a bull run in otherwise ideal conditions. While this run may continue to and beyond $1,000 an ounce due to inflationary concerns, investors also remain cautious due to rumors that IMF, the third largest gold holder, will soon sell off a large amount of the precious metal. If that happens, the bottom may fall out.