The hindmost of this year consign make the ninth consecutive December 31 when the fee of gold bullion was higher than the previous December 31. Gold has risen from approximately $300.00 in 2002 to $1,380 per ounce todaya profit of 360%
Taking Out the Crystal Ball: 2011 Gold Bullion Forecast
At this fleck of the gold bull market, we are at what I term phase two Phase one is when the extremely smart fiscal starts accumulating an asset because it is so depressed that no one wants it. For gold bullion, this can be classified as the spell between 2001 and 2009, a interval that adage gold gradient from $275.00 to $1,000 per ounce.
So, today, we are in phase two of the gold bull peddle At this junction, serious investors start to bear dispatch about the ramp in payment of the commodity Many investors are concerned about the future of the US. dollar given the debt that backs it; others posses given-up on the euro If I were to ask 100 investors today, I would guess only five percent to 10% would own gold investments in their portfolio
What I particularly like about this phase two of the current bull doorstep in gold is that we have so many reporters, analysts and advisors epigram its a bubble already! These relatives do not credit the firmness of a bull peddle in any asset once it startsbull markets closing in euphoria and speculation We are far from that in gold.
Two years ago, we couldnt give away subscriptions to our gold cattle newsletter Today, it is selling well, but not flying off the shelf as they prattle Hence, I see folks starting to ordinance whats event with gold bullion and I see investors interested in acceptance their feet rainy with the metal.
If you were to ask me for an educated guess as to when phase three of the bull peddle in gold would start, I would retain to say when gold hits $2,000 an ounce. Now heres the celebrated part: phase three of a bull doorstep can go until the asset subservient problem goes up 50% from when phase three started
What Im adage is that, if phase three of the gold bull market starts when gold hits $2,000 an ounce, which is inert some distance away, the metal can gradient another 50% to $3,000 from there, unbiased based on speculators and the trainee state recipience into the metal
If youve ever played baccarat at the casinos, you recognize the principal order is to not stake condemn the trend Who am I to hazard lambaste a nine-year winning streak? Gold prices bequeath closing 2011 higher than they modern 2010, thats my risk And that makes excellence gold stocks idle uncommonly appealing for investors
Michaels Personal Notes:
I understand this is rather off-the-wall, but I want to portion it with my thought-provocativePROFIT CONFIDENTIALreaders The sequential is from my colleague and co-editor Robert Appel:
Early in 2011, no final than May, we expect a universe economic crisis similar to 2008, most likely involving currency pegs and the pricing of solution commodities
Many consign mention to it, with hindsight, as a entire storm in that different aspects of the crisis consign co-mingle seemingly unrelated challenges involving embryonic social unrest in many countries in response to the expanding teaching of powerlessness and disenfranchisement among the middle class.
Inflation and deflation commit co-exist, which bequeath be unsettling to consumers and academics both Interest rates bequeath creep up, behind and steady, but nonetheless unstoppable There commit be many unsettling incidents of international brinkmanship, especially between senile enemies, but no major war that spans borders
Two of the biggest venture surprises cede be a well-coordinated attempt by the Western governments to control/choke Internet traffic and the revelation that Hollywoods succulent afafir model, essentially unchanged for over a century, is no longer working, and a new one is desperately needed. Yet another obsolete film queen consign run for office Headlines commit be made when scientists proclaim how average cancer has become.
Gold entrust stroke $2,200 an ounce during the worst of the crisis, but known the year reasonable under $2,000 The broad vend in December 2011 entrust be where it was, approximately, in December 2010
Where the Market Stands; Where its Headed:
Not much of day for the markets yesterday, impartial further of the same: The Dow Jones Industrial Average trades around a rangy not heuristic in 22 months, U.S avowal yields rose again, with the 10-year US. Treasury now yielding over 3.5% Gold eased off, but not enough for me to bounce in and buy more
The move peddle in stocks that started in March 9, 2009, continues. Im taking increasingly concerned about rising long-term behalf rates and their contact on the livestock tout for 2011, but in the immediate term, I think this muster has more leg left
What He Said:
Ive been pushing gold bullion and gold shares for over a year now Bank in January 2002, I personally started buying gold shares. Michael Lombardi inPROFIT CONFIDENTIAL, December 13, 2002. Gold bullion was trading underneath $30000 an ounce when Michael boon started recommending gold-related investments Many gold stocks recommended in Michaels advisories gained in excess of 100%.
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