Dow Theory Letters
"My own take on gold is to rely on the long-term stance. For this I use my monthly chart along with the 20-month and 40-month moving averages. This has worked well for me. Gold is holding above its 20-month MA, and the 20-month is holding well above its 40-month MA. The primary trend of gold is up, and that's the overriding fact. All the short-term analysis is interesting, generally confusing and usually wrong.

The fact is, I don't recommend trading gold at all. You take your position, you put it aside, you add to that position as you want, and you treat the position like a Matisse painting. It's a store of value. That's it. I don't know anyone who has retired on his gold trading. There may be a few around, but I haven't met them. In fact, I've never heard of them."(7/02/07)

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