Wednesday, April 20, 2011
Gold Surges Toward $1500 Per Ounce
Gold is casting a vote against the American financial system. I'm about 15% in commodities and my portfolio is at an all time high. The question is whether gold will vanquish the $1500 barrier. Just ten years ago the yellow metal sold at $250 per ounce. How high will it go? I am buying a little extra silver for the short term. Expect corrections further down the line. One rule is "sell in May and go away." Gold stocks have been lagging. Maybe they are a better bet now. Silver has been having a great ride. But parabolic rises (something like 20% in the past couple of weeks) cannot last forever. On the other hand, the trend is your friend. I may go with some shares of Barrick Mining and leveraged silver. But this is short term. I don't expect this kind of parabolic increase to continue for more than a few weeks.