gold's $400 watershed

  1. 9,081 Posts.
    When gold breaks through $400 watch for a rapid move up through the $420+ level as technical buy indicators come into play. Indeed there could well be some short covering panic buying that could really escalate the price. Not a time to sell, imo.

    Remember that "Joe Public" really knows didly squat about the bull market in gold. Thus far it has been really a stealth bull market, barely whispered about in the popular press.

    Gold mania is when the bellhops and cabbies start talking about the latest hot gold stock. Gold mania is a long way off yet. When gold mania strikes, then is the time to take profits.

    You will know when gold mania is here when Goblin starts to sing the praises of gold

    Be careful of selling too early. Sure, re-juggle your gold portfolio .... sell the 'dogs' and take some profits on the really big movers and take up positions in gold stocks with better prospects. But ... sell out entirely??

    Nope .... not this little black duck. Opportunities like this with a long term secular bull market in gold in its embryonic phase are just too good to pass up.

    As long as gold is still in uptrend, I will stay with it.
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