Gold: Be Prepared for a Dip, But Don’t Miss the Spike

Central Banks may yet make efforts to drive the price of gold down further this year to allow them to purchase more, so I suggest being ready to jump in and buy if gold dips below $580 an ounce. Might go below $550 an ounce, one gold expert told me. That’s if we’re LUCKY. There is also the potential for geopolitical tensions and the reality of rampant inflation and inadequate quantities from mines to generate a rapid and long-lasting increase to much higher levels, such as at least $800 an ounce. What to do?

Roger Wiegand offers some compelling reasons to buy gold now. I think a portion of your savings needs to be in gold and silver, the physical metal, and I would begin buying some now. I’d keep some cash on hand, maybe 30% of your PM budget, to catch a possible dip between now and late September. If it rises to $700 or so, well, you’ll be glad you had some gold, and you’ll still have cash to watch for future buying opportunities in precious metals of mining stocks, or some other investment. And if there is a correction first, buy with both fists and then HOLD. Don’t even think of selling gold below $2000 an ounce unless you have no other choice to meet your obligations. We will see such prices, perhaps within a couple years.

By | 2006-09-15T17:55:02+00:00 August 20th, 2006|Categories: Investing|Comments Off on Gold: Be Prepared for a Dip, But Don’t Miss the Spike

About the Author:

Jeff Lindsay, the Sheik of Shake Well, is an ordinary guy posing as another ordinary guy formerly from Appleton, Wisconsin, now living in Shanghai, China.