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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Thursday, February 11, 2010

Whats up with gold

The valuation of gold is at an interesting crossroad right here, look at the first image below. Gold is struggling to maintain the trend line established in 2008. If you are optimistic on gold prices, now is not a bad time to SLOWLY buy (in case your wrong). Gold miners (GDX) I would like to see priced around 38 to bring the optimist out in me on starting to buy. However if gold does stabilize here, not sure if GDX Will go lower than 40.

If you want to jump on the natural resource/fear play/currency devaluation play, then plan for gold to go down to 800, gdx to 28, and buy with that as your "almost worst case" for purchasing. As Gary of the smart money tracker points out, Gold is in a bull market since 2005, so buying at any time should eventually reward you.

I want to say now is the time to load the boat, but I can't help but think the markets take another leg lower before possibly firming up. And if that happens, I cant see GDX maintaining value.

In the end, its up to you, there is a million opinions, but only one that counts.
From WebSufinMurfs FinancialBlog2

From WebSufinMurfs FinancialBlog2

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