Now is the time to accumulate gold positions. Sometime before or after the election is probably the low of this round for gold price.
The reason? Although I still don't have access to Internet, I sensed a sort of panic among gold holders - people never posted any messages on my discussion group and people who never sent me Emails started showing their concerns. That is a sure sign of at least a short-term bottom.
The recent correction of gold and equity market has one and only obvious explanation - some fund managers are not sure who will be the next president of the United States and how economic, political, and monetary policies would change. In time of uncertainty, they sell first and ask questions later. When the election issue is out of the way, market would go back to where it was before.
During time of darkness with no electricity and Internet, the only asset that I have no problem holding for a long time is gold. In fact, I probably would be better off not looking at gold price at all for a year or more. With the fiscal conditions of the US government now, the value of the US dollar will depreciate with the passing of time and the bull market of 12 years for gold will continue as a resut of it.
So there is no need to panic. Hold on to your positions and accumulate more. My target price for gold did not change at all - 1800+ or even rise above the all time high of 1900 by the end of 2012 or the beginning of 2013.
When I have full access to Internet, I'll write a Chinese version of this. Thank you all for reading.
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