Thursday, January 3, 2008

A Golden 2008

I hope that all of you had a happy holiday and a great New Years. I have returned from a long vacation, and I couldn't be happier to see gold at all time highs with SPG and DDR still sinking.

Gold and gold stocks are on fire. As I stated in earlier posts, I expected gold to rally into the end of the year because of multiple factors. Steve also gave everyone a lesson in gold bubbles. The lesson to be learned is that gold is not anywhere near finished in this run. The metal based at the $800/oz level for almost a month and is now screaming higher.

$1,000/oz will occur within the next year. Expect it to make headlines in most newspapers and major news networks. How many average joes on the street know that gold is at record highs right now??? Just wait until the American public hop on the gold wagon. That will be the time to think about selling. The American public are just as good as everyone else at hopping on to bubbles as they burst. The Nasdaq and housing are good recent examples. I am expecting gold to be added to that list.



Gold stocks are just breaking their 52 week highs. Now is the time to add to positions in gold stocks. ABX, GG, and AEM are on fire.

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Yesterday as the market tanked -2% these stocks were ringing in the new year with 5-10% gains. I expect these stocks to have a great 2008. Yearly gains of 100% from these levels are not out of the question. Especially if gold breaks the $1000/oz mark.


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