Are you paying attention to silver and gold?!?

Yesterday, for the very first time in my lifetime GOLD traded above $1,000. It hit a high of $1,000.10 but the total gains yesterday were only $13.50 to close gold at a new high of $992.30. It’s going to go higher, at least another $50. Possibly much higher than that. Depends on how weak the Fed lets the US dollar become.

And my darling investment choice, Silver, closed at $20.34, up 43¢. AND it is getting close to the previous high of $20.69. Silver’s performance right now is great, but it needs to move to a new high today ( and it needs to bring gold along with it), to anchor these gains and show that the small corrections are complete. If they don’t move higher there might be one more quick dip next week. Silver & gold are on the road to blowing the lid off as an investments. Where will they top out? Nobody knows. It’s very possible that these prices are merely the beginning of a bull market that will last another 7 or 8 years. I don’t see the prices dropping much unless the Fed finds a way to prop up the (weak/whinny/wimpy) US dollar.

We have been long overdue for this weakening of the US dollar. My fear is if we allow the Fed to continue their plan, the dollar will become worthless and the rumors of the Amero just might become a reality. Look for NAFTA to be strengthened and for the US and Canada to merge their currencies in the next 5 to 7 years. But I could be wrong there. Could be, but I doubt it. And as the dollar weakens look for your purchasing power to decline.

I missed the mark of gold hitting $1000 by 3 1/2 months. My original guess was end of 2007. I would not be surprised to see it hit $1300 by early to mid 2009. Silver can easily hit $50 by years end as gold becomes too pricey. So, are you going to spend some money on gold or silver this week? Just to give you an idea of where gold and silver have been since November of 2001:

Gold: 11/01 $279, 11/02 $320, 11/03 $390, 11/04 $440, 11/05 $480 & 11/06 $640

Silver: 11/01 $4.05, 11/02 $4.45, 11/03 $5.38, 11/04 $7.62, 11/05 $8.20 & 11/06 $13.49



Filed under Journal

2 responses to “Are you paying attention to silver and gold?!?

  1. Whee!! I’ve got a little gold and silver I’ve stored away for years. After so many years of flat values I may actually be making some money from them.

  2. My dad is cashing in on this recent rise. He bought a bar of silver back in the 80’s and lost money on it until silver rose above $18. So he’s taking advantage. I’m trying to talk him into waiting a couple months. But he’s afraid it’ll drop ….

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