Monday, June 22, 2009
I think Gold is just about done correcting. I am expecting the bottom to come in between $900-$920/ounce and I think there's a good chance it will happen this week. Gold anywhere under $920 is a great buying point for investors.
In the bullish scenario, Gold just bottomed this morning. I would rather see a panic spike down into the $900-$910 range to shake out a few more weak hands and cement the bullish case. Those who hold the most Gold know how to run the weak bulls out so that they can pick up a few more cheap ounces for themselves before the next bull run.
Once this week is over, I think Gold makes a run for the $1000/ounce mark again and this time, new highs in the Gold price are more likely than not. I also think Royal Gold (ticker: RGLD) is about to explode upward with the Gold price. This is also why I think a double top in the senior Gold miners is not out of the question. But before the bull gets too frothy again, remember: if the price of Gold makes new highs and the senior Gold mining stocks don't, this is an indication to sell/avoid Gold miners for the intermediate term, not buy them. All stocks have trouble making new highs during a bear market leg down in the general stock market indices and one has already begun.
This just sets up patient Gold stock investors and speculators with another buying opportunity. Be patient and make more money with less stress (i.e. buy low so you can more easily sell high).