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Gold and Silver…WOW

Color me a believer in price.

Let’s face it, gold is a useless metal in North America. Silver less so. Obviously, there is something bigger going on. It is not just speculation, nor is it inflation and a weak US Dollar alone.

In the past, gold stocks were hammered during market corrections. Not recently.

I am not chasing the metal or stocks here. I am actually considering some sales in SLW and PAAS. In fact, I will sell some of both on the open. In the past, major price spikes have been great times to sell.

It’s a major bull market so major price declines would be a good time to add. I will rebuy some leaders on the next major decline. It will come.

Update – Eddy Agrees. A great post about commodities in general as a historically awful investment . That said, what would the markets look like with Gold at an inflation adjusted all-time high of $2300/ounce? Would Twitter or Facebook matter much :) .

  • http://trendandvalue.blogspot.com Lucas

    slw is about to go parabolic. look at a weekly chart (log scale) and you’ll see it. $25 by the end of the month is a conservative target. but of course it could back off a buck or more even before it flies. who Knows..

    disclaimer: I do not own stocks, including slw.

  • Jarowh

    The US government is about the flood the market with gold just like they did with uranium at the beginning of 2007. Uranium was up 84% at the time and look at its price now.

    If you buy gold or uranium you may turn into a statue or your skin might turn bright green.

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