Re: Spot gold blows through $1,200
I suspect gold to be at $1,130 or before New Year’s. Silver? My big toe tells me $16.85 or so.
In fact, I anticipate a short-term blowoff in both Ag and Au before they resume their climbs.
It’s running too high, too early in the process. In this environment I believe a sharp correction is in order.
I hope so. I’ll buy more of both if they do.
I think you’re right Pete. Not that I care as I don’t buy for profit but IMO these two are in a “bubble” at this time. I do agree that there’s a bottom at $1040 due to the India buy but in between it’s been overbought in the paper form. Now obviously, physical is a totally different animal as the supply is fairly limited. And because of the change in CONEX rules I’m no longer taking physical delivery from them and have decided to keep my “hoard” in a Norwegian bank vault and buy through them as well.
I’ve upped my buying of PM’s to 75% of my monthly cash intake though. I’m lucky enough to not really need my family’s “salary”, so I can take it all and invest. But instead of putting it into a paper investment, I’ve decided to buy 70% Ag and 30% Au. 15% is going into foreign currencies.
I would think by the end of the year Au will be in the $1100 range and Ag $17.
But IMO, the dollar could implode at any time. If you’re buying for the right reason then it doesn’t matter what the price is…..buy when you have the funds.