THE TODD MARKET TIMER
26861 Trabuco Rd. Suite E 182, Mission Viejo, California
(December 1, 1997) METALS: Gold still looks atrocious. We have mentioned the central bank selling, but more is at work. The turmoil in Asia is resulting in less money in this region with which to buy gold. In addition, the anticipated flood of imports from that region is likely to depress prices in general making for even less inflation. Unlike silver, which has been doing fairly well, gold has few industrial uses and inflation is one of the legs on which it stands.
Of course, we don't really need all of this analysis. Just look at the chart. This is a textbook case of a bear market if there ever was one, which is a persistent downtrend punctuated by sharp failing rallies.
Stephen Todd
Metals
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Energy Complex
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