My problem with gold is that the other metals have not performed as such, creating a very noticeable inter market divergence. It is starting to look a lot like $150 oil when “everyone that knows” was sure that it was going to $300 and above. We know how that ended.
I do realize that one can paint a pretty attractive picture for $2000 gold right now. I just can’t make myself get on that bandwagon.
I tend to agree. There is too much speculation on it, it is too hot. When everyone I know is asking me what I think gold would do; if its a good investment; how would I purchase it, I know there is too much interest. I made a good profit on the leveraged silver fund AGQ this year, but just sold out. I think the US government is going to have to consider raising interest rates at somepoint this year which should result in a stronger dollar and a drop in gold prices. I wouldn’t be suprised to see gold make it to $1500, after that I would have to consider shorting it based on when I think interest rates will rise.[/quote]
Use trailing stops, 10% being usual. The current economic situation is unprecedented and gold could literally go into the thousands. Or it could go to $500. I lean toward the thousands but it is wise to be a prudent investor.
Someday, this paper money will be ‘toast’.