Gold bounce continues

Posted by Howard
on July 5th, 2006

They will tell you it is because of North Korea testing missiles. They will drag out the gold bears and tell you this is just a bounce and the $700 spike was it. Trust me on this.

The price action is a result of the weak US dollar and the no end in sight to the housing dilemma other than rate cuts. With Gold at $630 after one billion rate cuts, imagine the possibilities of a late year reflation campaign.

That said, this morning’s rise to $630 is my excuse to sell down my gold position to a 5 percent portfolio allocation and ride my remaining gold stocks. It has now been a great trade but if I had any “balls” – was a yearmaker. That is why I am stuck writing and not retired to a white beach desert island.

I own NEM, GG, MDG,GOLD, PAAS, IVN, RIC, AAUK, AEM

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.