Well its been an exciting past week in the precious metals markets. Gold exploded to the downside when it broke below the US1527 dollar support shelf. As expected the break triggered a lot of stop loss sell orders.
The following Gold price chart is from Fridays EWI Short Term Financial update. The next downside target is the $1300 range around the bottom of wave 4 of wave (5). This would also be a 38% retracement of the advance from 1999.
EWI also noted that the inflation investments including gold, silver, oil and metals including DR Copper are all in decline. This would suggest that we are in a deflationary asset cycle which will eventually take its toll on the stock markets and Canadian real estate.
Perhaps Vancouver real estate is ripe for a major downward price correction. With many central Vancouver apartment condos held by so called investors but really speculators sitting with empty units (estimated at 25%) there could be a huge price crash when the speculators start to cut their losses and sell at any price in total disgust. And the current buyers of new condos for delivery several years from now will forfeit their deposits and walk away from their legal purchase obligations.
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