gold surge next week

  1. 9,081 Posts.
    With gold closing above $350 and TOCOM ready to open on Monday after an extended holiday expect the POG and gold stocks leveraged to the gold price - LHG definately and CRS possibly - to make strong gains early next week.

    With the gold hungry Japanese back in the market there could be panic buying from them - and also from the shorts, desperate to cover their positions.

    Strategy? Hold or add to the producers like LHG CRS SGW (yes ....SGW, in spite of its problems will do well) .... EMP could surprise on the upside ... DOM is looking strong .... GYM could break upside ... there are just so many promising producers to choose from.

    At the casino edge of the gold playing table there are a host of pennydreadfuls that could explode when gold fever eventually hits. Stocks like the "sleeper" GSE come to mind ... as well as hopefuls like IRC ... and under 10c stocks like these could offer a once in a lifetime opportunity for massive gains over the long haul.

    Fascinating times are upon us .... and fascinating opportunities abound. Fortune favours the brave.

    Hold or buy during the dips becuase this gold run is still in its infancy. There are still legions on non-belivers out there who think that this "spike" is only a temporary abberation driven by war fears. How wrong they are.

    I take heart from the fact that the popular press is, on the whole negative or very quiet on gold .... also, encouraging is the fact that the 'general public" have yet to be infected by gold fever.

    For that to happen gold will probably have to climb above US $500 oz .... a figure achievable in this calendar year.

    Then watch the feeding fenzy as latecomers scramble to climb aboard ... as the "experts" extol the merits of investing in gold ... as non-belivers become true belivers .... and as the funds are forced to buy in for fear of missing out.

    Then it will be the time for seasoned gold bugs to begin selling to the gullible masses .... locking in profits, preserving capital and letting some of their casino money ride the wild gold bull.

    No one knows where it will end ... but, in the last frenzied ride of the bull, the most satisfying ride of all will be a free one, devoid of all capital risk. And that ride could last foy years, not months.

    Play this gold bull market with "sensible courage".
 
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