
Even Superman has his bad days. We saw that last Sunday when the New England Patriots, widely viewed as the Superman of football, were beaten by the underdog New York Jets.
We saw it again in recent months when gold, the investment arena’s Superman, switched from the man of steel to a powder puff after racking up 10 straight years of gains (30% last year) during which it shot up more than six fold from $228 an ounce in 2001 to a recent all-time high in early December of $1,432.50. But since then, the yellow metal, which is looking quite toppy,has backtracked to around $1,350.
This decline, though hardly awesome, has led to a series of warnings, such as “the gold bubble is about to burst” and “a collapse in gold is imminent.”
One of the country’s dogged trackers of precious metals, a skilled market timer who warned of the recent gold selloff, is online investment adviser, Mark Leibovit, editor of the VR Gold Letter in Sedona, AZ. His latest thoughts: More gold weakness could be in the works into March which might knock down the price 10% to 25% from its recent high (which raises the prospects of a possible drop to as low as roughly $1,070).
But after the gold drop, he sees a likely gold pop.
The metal, as Leibovit sees it, has to overcome the lack of strong upside volume and the recent resistance to re-establish its short-term