Gold has been in the news for quite awhile now with it skyrocketing upwards to who knows where. My prediction of $1000/oz was off by 30% but the real story winner is apparently silver.
The precious metal over the past year has increase from about $15 to $23 per oz. This is about 50 percent gain and I’m sure it will continue to go up if both gold and silver act as money. But you may want to consider
that gold and silver are historically stable investments. Even in times of economic crisis like the Great Depression, precious metals retain their value. This is especially attractive to an investor in the current economic climate. — wbay
The past week gold and to a lesser extent silver have simmered down a bit. Does this mean that the value will go up for ever? Of course not, prices will fluctuate over time, but during a currency crisis and Governments are debasing the value of their dollar, the odds are that prices will climb.
Gerald Celente from Trends Research has been advocating $2000/oz gold in the near future:
On the upside, should gold move smartly passed the $1350 level and settle above it over the next two days, it will signal strength.
If silver maintains a historic 50 to 1 ratio with gold, surly silver will increase to $40 if gold pushes the $2000 mark if Celente is correct. But who knows if Celente is correct or if the Great Great Depression will continue for years to come.
For me, I continue to buy on dips and unfortunately my $115 GLD covered calls forced me out of the ETF many months ago and I didn’t get a chance to get back in. But I feel safer with gold in my pocket and I’m afraid that silver is too bulky to carry around even though it may continue upward.