Color me a believer in price.
Let’s face it, gold is a useless metal in North America. Silver less so. Obviously, there is something bigger going on. It is not just speculation, nor is it inflation and a weak US Dollar alone.
In the past, gold stocks were hammered during market corrections. Not recently.
I am not chasing the metal or stocks here. I am actually considering some sales in SLW and PAAS. In fact, I will sell some of both on the open. In the past, major price spikes have been great times to sell.
It’s a major bull market so major price declines would be a good time to add. I will rebuy some leaders on the next major decline. It will come.
Update – Eddy Agrees. A great post about commodities in general as a historically awful investment . That said, what would the markets look like with Gold at an inflation adjusted all-time high of $2300/ounce? Would Twitter or Facebook matter much :) .
slw is about to go parabolic. look at a weekly chart (log scale) and you’ll see it. $25 by the end of the month is a conservative target. but of course it could back off a buck or more even before it flies. who Knows..
disclaimer: I do not own stocks, including slw.
The US government is about the flood the market with gold just like they did with uranium at the beginning of 2007. Uranium was up 84% at the time and look at its price now.
If you buy gold or uranium you may turn into a statue or your skin might turn bright green.