First: The usual disclaimer. I am not an investment advisor, no one is paying my for my opinion (you probably should since I am honest and direct)
If you act on what you read here, do your own dillegence. It's your money and you are responsible.
I have learned technical analysis, which means that I draw lines on a chart and determine the trend, and speculate on the direction of price. It only tells you where the price has been, not where it's going next. It does, howver, provide probablitlities based on previous observations of price action.
Forget about fundamentals. They matter, but only over the long term. Short-term anything can happen, because price is a function of agreement with buyers and sellers. Bulls expect the price to go up and bears expect the price to go down. Whoever blinks first, or runs out of money to back their opinion looses in the short term.
According to my observations, Gold has finnally broken out of a year-long consolidation. The previous high was last December 2nd at a close of $456.87. Last night it finally broke above that mark and today is a $459.00.
This means that the bears on Gold are loosing the war on price, and the Bulls are gaining. Everytime there's a dip in price more people come in. As the price rises, even more people come in.
Gold and the Dollar are inversly correlated, Gold just sits there gathering dust. It only becomes valuable when you can't earn a decent return on your money. When gold rises, it portends bad times ahead.
Every rise in Gold means a decline in the purcahsing power of your dollars, you have probably noticed oil and gas prices have been rising, along with just about everything else you buy. So just buying gold will let you break even- keeping value less the taxes you have to pay.
You can get leverage in all kinds of ways, but they are risky. Miners provide leverage, and I have been recommending that people buy GG or Goldcorp. It is the best producing miner I know of, and it's price is rising accordingly. RGLD or Royalgold is a royalty company- which gets their money by letting others mine their property. They get a guaranteed percentage so they are very safe and profitable.
As long as gold continues to rise, the price of these stocks will rise too. I will post a warning when I think it's time to get out.
You can also buy mutual funds that invest in gold. US global invstors offers two that I have my IRA's in, USERX and UNWPX. A PHD named Jeff Kern writes about USERX and 321gold.com and has a system he uses to decide when to buy and sell.
Here's the funds website.
http://www.usfunds.com/main_intro.aspHere's the link to 321:
http://www.321gold.com/In general terms I expect the next few months to be very good for holders of those stocks and funds I mentioned.
Two riskier stocks, a junior miner DEZ -Desert Sun Mining, and an exploration company, GSL.TO are two that I recommend as well.
In today's trading:
Open Close Increase % increase
DEZ 1.92 1.97 .05 2.6
GG 20.08 20.40 .32 1.59
GSL 6.31 6.57 .254 4.03
These are not todays closing numbers. USERX and UNWPX numbers won't be available until later on after the markets close.
I would be very happy if you were able to benefit from my work here. Please let me know if this type of thing interests you, or I'll stop posting this type of stuff.
