Gold $1,518 Silver $49.25 - Now What? (Fantastic Precious Metals Read)
- by Peter Grandich (This is a guy I've been following for a while now and whose advice I heed, and have regretted the few times I haven't, particularly his being one day off from the March 2009 lows.)
I’ve been aggressively bullish on gold from just above $300 and silver in the single digits. While I still believe the “mother” of all bull markets won’t end until gold hits at least $2,000+, I do think it’s time to have some sort of strategy of booking profits going forward. This desire to do so is sweetened by the fact that from well under $1,000 in gold and below $20 in silver, I targeted $1,500+ gold and $40+ silver by 2011.
Before the ultra goldbugs label me “Benedict Arnold” and call for my head, I’m not suggesting these are the ultimate highs in the precious metals for years to come. It’s close to three decades of being in and around the financial arena that cries out to me that far more times than not, it pays to take a profit…and in this case some gigantic profits one could only have dreamed of not too long ago. The game of investing/speculating/gambling is very much tilted against the little guy. All you have to do is begin to appreciate what the financial community did in the biggest financial scandal of all time just a few years ago, yet not one of those culprits have gone (or likely will go) to jail. To think you or me are on a level playing field with these bandits (excuse me, financial experts) is foolish. Therefore, now more than ever, it’s not about all or none but booking profits and building capital to play against the big dogs, have multiple times at bat and hope to pick up their scraps.
Before I suggest some possible scenarios going forward, it would be very useful to review what has occurred. Just like one looks in a mirror to see what’s behind them before driving on, we should come to terms with what got us here before we make a hopefully educated guess on what may be best to do going forward.