Gold, Silver and Other PMs: Another Gold Opinion

» Normxxx - Another Gold Opinion

I'm now looking to add gold on a test back down to the $454 area— and am still waiting patiently for that opportunity. In the meantime, gold has been bouncing around $463, which is an interim level. If gold is super-strong, it won't go much below this $463 level and I'll miss my chance to add at $454. But I don't think it's going to play out like that. I can also buy a strong daily close over $480 and look to ride up gold to the ultimate target somewhere over $500.

But I don't think gold is going to sky-rocket during this current cycle. My highest target is at $525, and it's more likely gold will top out well below that, somewhere between $500 and $525— probably just over $500— or whenever the gold bugs decide it's clear sailing to $1000 or higher. This top over $500 in gold— wherever it comes— should be the end of the line, and gold will come way back down in 2006 as the bond markets start to soar. Later, when inflation really kicks in— in 2007 and beyond— gold will really be the asset class of choice.

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The contents of this letter/report does not necessarily reflect the opinions or viewpoint of normxxx. They are provided for informational/educational purposes only.

The content of this message is not to be construed as constituting market or investment advice. It is intended for educational purposes only. Individuals should consult with their own advisors for specific investment advice.

-- posted by Normxxx