Generally, precious metals, real estate and oil go up for about a year then come back down to earth within 8-10 years. Real estate was a bull market from 2000 to 2007. Oil was its strongest from 2001 to 2008, Gold from 2002 or 2003-???, Silver from 2004-???
Oil has some room to fall and is being artificially held up, Real estate crashed and banks are forced to hold onto properties they cant sell at a good price. From 1972-1980 Gold went from $40-800 an ounce. Some people thought that ment that gold would go up twentyfold, I truely doubt gold will hit $5000.
Gold quickly went to 100-200 farely quick, because that was a fair market value at the time, it then went to 800 which was at the peak of the mania. China isnt going to suddenly buy all the gold and drive up the price, it most likely is slowly and quietly buying up gold.
My Prediction? Im not going to make a "this price by this day" prediction on gold, i'd only look foolish. I think it still has some strength, so 2012 should be the peak. If it went over $2000 then i'd be shocked, $1500-2000 would be where I see it going.
What happens after? I don't see $250 again, the gov't has racked up too much debt to have that kind of stability. I think $400-600 will be a typical range, there may be occasional dips under $400. But remember, buy cheap sell dear. All the people who bought gold at prices between $250 and $600 are grinning all the way to the bank. People buying at these prices have to keep a close eye on the market and look for 12-20% a year in gains.
Silver is $17.33 an ounce, SLV is the ETF for silver. Thats dirt cheap, its at a 1:70 ratio with gold. When gold was $600 silver was $14, gold has doubled and silver has gone up $3.33. I think silver could reach $24 in 2012. Based on current prices, the jan. 2012 SLV calls at $3.25 are a good choice or the jan.2011 $19 calls. both could triple.
Disclaimer- For Information and Entertainment purposes only, not an investment Advisor.
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