It seemed this past week when the price of gold hit $1366 USD overnight, the general public noticed. The funny part is when it dropped to $1325 that same day, those who do not own or follow gold started to celebrate that the price dropped. Is this envy? Can they not afford it? I am not sure. One said - how come you did not sell the top? Well, if your target is 3-5k, then there is no need to. I think 2 prices where gold will pull back to in the next 2 weeks are 1305 and 1265. After that, a run towards $1450. During the pull back in the next 2 weeks, the haters will celebrate, but I will tell them that gold is "on sale" and buy if you do not have a core position. If they think they know the markets better, than I will tell them to open a futures trading account to prove it.
Saturday, October 9, 2010
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My target on gold is 3-5k in USD. Gold/silver are up ~30% in 1 year...that better than the 1% rate of saving USD in a saving account.
ReplyDeleteI do not own GLD. I do own some PHYS and SGOL. But, the bulk of my holders are in the jr miners and physical coins. While I sometimes trade gold via a futures contract, i only hold it for 2-15 mins as a day trade. I do worry down the road that someday there will be a bank holiday and I might have trouble transferring some of my gains from the mining stocks from my broker.
I agree to stay away from the GLD ETF. Read an in-depth explanation on the GLD ETF risk, on http://www.hindecapital.com/reports/ read the "GLD - the new CDO in disguise?" report.
Also, it looks like my post on Sat on the gold pull backs did not happen. Again, the surprises in a bull market come to the upside and to never loose a core position.
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