Wednesday, October 22, 2008

More bliss, more buying...

Gold stocks went on sale again today so I bought some more. I intend to have 95-100% of all my "stock market investment money" invested in gold stocks by Halloween. I also have cash, gold and silver that is outside the system as my safe "cash equivalent" holdings.

Today I bought Yamana Gold (AUY) call options and put in orders to buy Newmont Mining (NEM) and Royal Gold (RGLD) call options. I wanted to buy some more physical gold, too, but I don't have any extra money right now.

I am feeling wildly bullish on gold stocks despite the beating they have taken lately, as it clears the deck for a spectacular 2-3 year bull market in gold stocks that should be one for the record books, especially compared to the beating the general stock markets are going to take over the next 2-3 years.

Remember: the price of one ounce of gold will equal the price of the entire Dow Jones Industrial average at some point in the next 10 years and stocks will be a terrible long-term investment until this occurs. The Dow to gold ratio closed at 12.4 today (near resistance), and the chart says that this ratio is getting ready to take a fresh plunge that should begin within the next 2 weeks.

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