lessbull.com

From the report:

The foundation for new all-time-highs is in place. As far as sentiment is concerned, we definitely see no euphoria with respect to gold. Skepticism, fear, and panic are never the final stop of a bull market. In the short run, seasonality seems to argue in favor of a continued sideways movement, but from August onwards gold should enter its seasonally best phase. USD 2,000 is our next 12M price target. We believe that the parabolic trend phase is still ahead of us, and that our long-term price target of USD 2,300/ounce could be on the conservative side.

The study is covering the following topics:

Central bank’s monetary inflation supports progressive remonetisation of gold
Inflation ? rising prices: confusing terminology with grave consequences
The chronology of a hyperinflation – Explanation based on Peter Bernholz’ “Monetary Regimes and Inflation”
Gold in an environment of a deflationary loss of confidence
The biggest misconception with regard to gold
High stock-to-flow ratio is the most important characteristic of gold
The advantages of a gold standard
Financial repression: the alleged magic formula
Why gold remains (dirt) cheap in India and China
Excursus on Interventionism – It is a fine line between manipulation and intervention
On the search for a “fair value” for Gold
Possible price targets for gold
Why gold is (still) no bubble
Gold improves portfolio characteristics The renaissance of gold in traditional finance
Why is gold such a highly emotional topic? Cognitive dissonance and normalcy bias as possible explanation
Challenges for the gold miners: Peak Gold and increasing resource nationalism
Gold shares (still) with historically low valuations
Some broad observations:

In order to analyse the status quo of the gold bull market, we would like to put the development of the gold price in relation to other asset classes on the following pages. The following chart illustrates that chrysophilites11 still have little to worry about. The left-hand scale shows the ratio of the MSCI World equity index to gold, while the right-hand one depicts the ratio of a total return index of 10Y US Treasuries to gold. The chart clearly highlights the fact that the relative strength of gold (falling ratio) vis-à-vis both asset classes is still intact. Both ratios have been setting lower lows and lower highs and are thus locked in a downward trend. Gold holdings should be reduced only once a significant trend reversal becomes apparent.

cont

http://www.zerohedge.com/news/gold-repo … etal-going

Statistics: Posted by yoda — Wed Jul 11, 2012 10:35 am