Earlier this week Robert Prechter of Elliott Wave told CNBC that this is perhaps the last chance to get out of stocks with the DJIA “in quintuple digits.” He also believes that stocks will fall below the March 2009 lows. Prechter believes that if deflation comes, gold could see a 40% drop from its peak. He feels gold is overbought and starting a new bear move there anyway.
George Soros called gold the ultimate bubble in Davos. The billionaire said specifically that gold was in the midst of the ultimate bubble and that with low-interest rates the world’s financial policymakers are running a risk of making new bubbles . He even noted that when rates are low there are conditions for asset bubbles to form, and he said these are in development now. Soros said, “The ultimate asset bubble is gold.”
The SPDR Gold Shares (NYSE: GLD) are up 0.3% at $106.85 and the ETFS Gold Trust (SGOL) has not traded. The MV Jr Gold Miners (GDXJ) is very thin in pre-market volume, but this morning it looked up 1%. Gold was down earlier, then it was back up around $1,093.00 this morning. On last look, gold is up $0.23 at $1,089.50 per ounce.
JON C. OGG
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