Another day, another all-time high for gold. It seems like this has been going on for months now – and in fact it has. Just check out the beautiful chart below:
We rarely take much opportunity to pat ourselves on the back here at TDV but I think some patting is in order! For one, congratulations to our Senior Analyst, Ed Bugos, on gold surpassing his 2010 target price, two months early in fact.
And, for our subscribers, just look at the great gains in our portfolio (stock names removed):
Not one stock in the red and most well into double digit returns just in the last 3 months.
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But, before we go any further, Ed Bugos, TDV’s Senior Analyst, sent me an email with his thoughts on the market today.
Here they are:
Gold prices shot up $15 and poked through $1400 today to new highs against the US dollar, and possibly the Canadian dollar, Pound, Yen and Euro. That was a smaller correction than I thought would occur. I am somewhat surprised that the news – which was so widely expected – could have catalyzed such strong buying. I guess there were a lot more skeptics on the sidelines than I imagined. But I say “somewhat” because in the end whether the Fed sterilizes its Treasury purchases or not is fundamentally immaterial, and the market’s bullish reaction is the correct one. Clearly, the smart money is still in charge of this bull, so any meaningful top is far off.
It looks like the next stop is our $1650 target –the upper band in our ‘short term’ outlook.
Don’t be short, or out of this market. That’s the best advice I can give. Hopefully our subscribers weren’t too timid in buying our picks.
Markets, says a friend of mine, tend to surprise the pros on how fast a move unfolds, not so usually its direction.
When the infamous dotcom analyst Henry Blodget put out a $400 target on Amazon’s shares in 1998, then trading at under $200 he probably didn’t expect it to get there in a month. I keep asking myself, are we at that point in this bull market where it’s going to run up to my long term target in the next few months? Not likely, since I’ve raised it to well above $3000. But formerly it was between $2000 and $2700. That doesn’t seem so far anymore. It’s less than a double! When I first made the gold price target in the early 2000s it would have been almost a ten bagger.
If we’re going into bubble mode now, a Blodget style move in gold could see it pop up to $3,192 before Christmas, making my previously aggressive $1650 target look as though I were bearish. I’m not banking on a parabolic move like that, not yet…not yet, we can only hope.
I’m not sure we’re really ready for the end of the world, yet.
Of course, if it were here, according to Ludwig von Mises, such a move in gold prices might well foreshadow the crack up:
“Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them. It was this that happened with the Continental currency in America in 1781, with the French mandats territoriaux in 1796, and with the German Mark in 1923. It will happen again whenever the same conditions appear. If a thing has to be used as a medium of exchange, public opinion must not believe that the quantity of this thing will increase beyond all bounds. Inflation is a policy that cannot last” – Ludwig von Mises, Human Action
Deflation is nothing to fear next to the chaos that such an abandonment of confidence in the dollar would bring about.
Wise words from one of the best gold analysts in the business.
Meanwhile, TDV has just released a timely special report entitled “How To Own Gold” available to subscribers. Below are some of the topics discussed in the report:
- Why Own Gold?
- Why Geographical Diversification Should Be of Paramount Concern
- Why and How to Buy Gold Coins and Bars
- Where to Buy Gold Coins and Bars
- Should I buy Numismatic/Collectible Coins?
- How to Store Gold Coins and Bars
- How to Buy Gold Online and Store in Secure Vaults Worldwide
- Which Gold ETF’s/Funds are safe? Which Aren’t?
It is critical to not only own gold but also to hold it in the right form. There are risks involved with many forms of gold ownership and this Special Report gives you all the info you need to make the prudent decisions to secure your wealth now before the coming collapse of the US dollar based fiat currency financial system.
Subscribe today and you will receive this report free. And you have 90 days to try our service – if you don’t like it, just unsubscribe prior to 90 days and we’ll refund your money, no questions asked.