Originally posted by MissingLink
India Paper Gold Buying Shoots Uphttp://online.wsj.com/article/SB123503028764620693.html?mod=googlenews_wsj
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Wow! Indians buy paper gold whereas they are expected to shun jewellery. How can one be bullish on one and bearish on another?
My sense is finally the retailers will buy like never before also with gold one does not know the unaccounted quantity that people are holding because this is the best place to park black money.
Unlike a stock market where the daily volume is calcukarted and the demat accounts accessed there is no yardstick to know what is actually happening at ground zero!
Technically I presume that gold could move to around US$ 2400 though I would never bet on chart patterns. The last time gold saw a low of 100 and rallied 8 times to the peak. This time's low was US$300 and a eight timer from there means US$2400 though this time can and cannot be different.
But if it doubles from here we should have an exit plan for gold becauise the highs of US$ 800 in 1980 took 28 years to cross.
I am personally creating my plan to ease myself out of this metal but not immediately because a breakout in 28 years cannot(may not) fizzle out in 28 months!!!
