By Jason Hamlin: Gold fever is converting an increasing number of mainstream investors into gold bugs. Newbies who were fortunate enough to buy gold at any point during this year are no doubt celebrating their gains. And many are looking to take profits now that gold has made another record (nominal) high at $1,279. After all, the gold price has enjoyed an advance of nearly $100 during the past month and we are probably facing some profit taking and correction, right?
Not exactly. The first thing to consider is that while gold has just made a new record nominal high, the price is still nowhere near the inflation-adjusted high of $2,500 to $5,000, depending on whether you use true or manufactured (government) inflation statistics. Secondly, the $100 advance in the past month represents a gain of only 8%, versus the last major upleg which lasted 3 months and registered a gain of more than 26%.....read on
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