Thursday, February 25, 2010

Gold Update.

Gold and gold stocks have been in the doldrums and trending vaguely lower since Thanksgiving. I tell you what though, given the weakness of other markets and the strength of the US Dollar, gold and gold stocks have both held up much better than I expected. I thought back at the beginning of December that gold might eventually sink to around $900 an ounce on this leg down and I thought that if it got to $900, then it could go lower.

I don't think that gold is going anywhere near $900 anymore. I may start buying next time it gets much below $1000. I do think that it might not bottom before sometime in May, so I'm in no big rush.

I'm no currency and central bank maven but I have not changed my mind that most of the World's currencies are in big trouble and that eventually they will all be caught in a World wide inflationary cyclonic storm of huge dimension.

The place to be long term is precious metals and the most basic and necessary large consumption commodities. Energy, cereal grains, and fertilizer would be my three favorites. If you can afford to buy farm land, now's the time. I'd recommend North Dakota. Precipitation is up, growing seasons get a little longer every year up there and the mean temperature is down. I don't give a shit about the politics of Global Warming or whether we need to control green house gases. It's a documented trend. It's good for the farmers. Go with it.

1 comment:

I hunt with Dick Cheney said...

I'd recommend staying away from gold and North Dakota. Both are cold and heartless.