Wallstrip Updates Gold…With Julie

Posted by Howard
on February 19th, 2008

Wallstrip first looked at Gold after the spike to $700 way back in 2006 . A deep correction followed taking gold below $600.

Today, Julie gives us an update with the metal over $900 .

With my sale of Apple stock, GLD is the longest running position in my portfolio with PAAS and SLW not far behind . Too bad Apple appreciated 300-400 percent more or a new Gold dusted BMW would be sitting in my garage.

It is still not complicated…when the government prints monies, you get inflation. Even though we are off the gold standard, gold rises.

It has not hurt that countries developing wealth also like to accumulate gold and silver. Hence a long running raging bull market.

Fundamentally there is no reason for the rise to stop. Our monetary policies are as weak as ever and mining the metals is as tough and expensive as ever. Increasing demand and a supply that is not growing as fast is the right cocktail for price appreciation.

With metals, I have sold into the spikes before, I will do it again. Fundamentally, I see no reason for Gold to crack but it does have a history of violent corrections.

Disclosure- Long GLD, SLW, PAAS

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.