This article argues that gold is going to fall to US$600 soon. Some reasons cited are that investors have endured panic for three years, and gold has rightfully gone up. Now that the cataclysmic panic is subsiding those left carrying gold in their portfolios are trying to come up with reasons to justify the holding.
In addition, Gold at $1,400 an ounce is eerily similar to oil at $140. Remember all the credible firms extrapolating the speculative action into $200 oil forecasts. Those same bubble-builders are now calling for $2,000-an-ounce gold.
Then last month, Soros told investors that gold is the ultimate bubble and that it's "certainly not safe, and it's not going to go up forever."
Should I sell out now? I am long-term positive on gold, and view any dip in gold price as correction, not crash. Therefore, I will be making use of price dips to add on to my position. However, if there is a fundamental improvement in US currency, then I may look to taking profit on gold.
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