A new high for gold prices?

Posted August 13, 2008

"In typical fashion, gold and silver have not been playing to the script. A war breaks out between Russia and Georgia. You’d expect gold to rise. But the opposite happens: we get one of the most violent sell-offs in recent memory." — Dominic Frisby

Blogger’s note: Gold prices have fallen through the floor this week. And I don’t think they’re going to recover anytime soon. Investors, and regular joes on the street, are relieved that oil has moved down and the dollar has moved up. And their newfound sense of financial safety is a bad thing for safe haven investments, especially precious metals. Gold prices won’t start popping again until the market is scared out of its current complacence.

But my opinion isn’t the only one around these days. Dominic Frisby, commodities expert at MoneyWeek, thinks gold is at the perfect point to buy, and it’s setting itself up for its next rally as we speak. Is he right? Or has gold seen its last high for this particular economic crisis?

by Dominic Frisby

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In typical fashion, gold and silver have not been playing to the script. A war breaks out between Russia and Georgia. You’d expect gold to rise. But the opposite happens: we get one of the most violent sell-offs in recent memory. Gold breaks virtually every technical support level. Those on margin are forced to liquidate and the decline accelerates.

Where will it end? Is the bull market over? It could be.

Then again, it could also be the daddy of all buying opportunities… Read on to learn why.

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