The daily price of gold on the February 2011 chart (Infinity Trading Corp) as of 11:43 a.m. PST rose $13.9 an ounce, completing a chart formation found in 80 percent of markets that dropped from record highs, down and then back up but not as high as the contract high just before making a major move downward. This formation was called a 1-2-3 Top formation by a former Commodity Trading Guru, Ken Roberts, who made fortunes selling his commodity markets training courses back in the late ’90s and early 2000s.
Right now, gold is preparing to be sold off and, when it is, prices will fall dramatically. One must take into consideration that gold prices have been on the rise since before 2003 (Infinity Trading Corp Gold Monthly Chart) and just made the contract high in January 2011. But it took over nine years to get there, and an economic recession to fuel the demand. Now it must be sold off and can’t wait for economic times to get better because it would spoil the market. For this reason, the major contract sellers must sell while the price and demand are still high, or risk losing the market should strength return to the dollar.
The old adage “buy low and sell high” holds true here, so now is no time to buy gold. Those who do will find themselves holding 1$,300 an ounce gold worth well under $1,000 when those who bought it are all selling in a declining market. Don’t be foolish enough to believe gold is not coming down in price; chart histories tell the whole story.
The sell-off in gold and gold futures is not dependent on any other market other than what prices or events would best accommodate the transfer of gold from insider investors who now hold it to speculators in the buying public. All that is necessary is for those who hold the gold to sell it off at its current high price before they are out of the market and on to another consolidation drive in markets dragging the bottom of the price charts. This whole insider market strategy can best be illustrated like a game of Monopoly. But when you hold all the properties and they are all developed, you sell out at a high price and start again with your profits from the last game. This is not unfair in any way, but this is how the richest compound wealth.
Doug Brown “Despite Appearances Gold Price Drop Is Imminent” and “The Worldwide Price of Gold Will Be Falling Soon” 1/30/11
Infinity Trading Corp February 2011 Gold Price Chart and Monthly Gold Price Chart
Ken Roberts “The World’s Most Powerful Money Manual and Course” and other courses 1996