Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

Reply New Message

Prev Message Back To Forum Threaded View Next Message

safeharbour

Rank: President [?]

Points: 21788 [?]

Votes: 139 Score: 3.8 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Gold's Dip Is Done

posted on May 24, 2008 06:43PM

Gold's Dip Is Done

05/23/08 - 01:59 PM EDT

Jim Cramer

TSCM.cfg.customAdSponsor = "businesstraveler"; TSCM.cfg.customAdPuc = "Top_Logo_CathayPacific"; TSCM.cfg.SponsorIndexLink = function(){ document.location = TSCM.cfg.contextRoot + "/sponsor/" + TSCM.cfg.customAdSponsor + "/index.html?puc="+ TSCM.cfg.customAdPuc + "&partner=" + TSCM.cfg.customAdSponsor; } TSCM.cfg.SponsorLogoLink = function(){ var btsap = 1 + (Math.floor(Math.random()*100)); if (btsap<=33) { document.write('<a href="http://ad.doubleclick.net/clk;... class="adHelper" target="_blank"><img class="imgCust" src="http://images.thestreet.com/tsc... border="0" alt="Business Traveler Update sponsored by Cathay Pacfic" /><img class="imgCust" src="http://view.atdmt.com/UMY/view/... border="0" height="1" width="1" /></a>'); } else if (btsap<=66) { document.write('<a href="http://ad.doubleclick.net/clk;... class="adHelper" target="_blank"><img class="imgCust" src="http://images.thestreet.com/tsc... border="0" alt="Business Traveler Update sponsored by Cathay Pacfic" /><img class="imgCust" src="http://view.atdmt.com/UMY/view/... border="0" height="1" width="1" /></a>'); } else{ document.write('<a href="http://ad.doubleclick.net/clk;... class="adHelper" target="_blank"><img class="imgCust" src="http://images.thestreet.com/tsc... border="0" alt="Business Traveler Update sponsored by Cathay Pacfic" /><img class="imgCust" src="http://view.atdmt.com/UMY/view/... border="0" height="1" width="1" /></a>'); } }

TSCM.cfg.SponsorLogoLink();

The selloff in gold has not only run its course -- if you bought the stocks on the way down, you are up, and up nicely.

Now, it's interesting to recall why we got a rout in gold: the big rally in the dollar. BIG BIG BIG. Remember that? We weren't supposed to care about the power of inflation to torment paper assets. We were supposed to delink the trade deficit with the dollar. Most important, we were supposed to overlook the budget deficit, as if that had and has nothing to do with gold.

Why the heck does everyone have to overthink everything, relating gold to the dollar, to oil, to LIBOR, to yen crosses and the carry trade? The dollar's about supply and demand, just like everything else -- thin oil -- and there is a huge amount of supply, and not that much demand; who would want to own a currency that the government keeps printing?

I think gold's in a bull market. That there's more climbing ahead. That this was the pause that refreshes.