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The price of gold has been on a tear for the past three weeks. After dipping to $1,090 an ounce on March 24, the metal soared to hit a high of $1168.70 an ounce yesterday – the highest level of the year. Is this beginning of the second gold wave? It looks like it... From Bloomberg, “Gold may rise to $1,300 later this year or next year, supported by increased investor demand, Philip Klapwijk, executive chairman of research company GFMS Ltd., told a conference in London today.” And from Reuters, “We expect gold prices to continue to rise from current levels as we expect real interest rates to remain low on a continuation of accommodative U.S. monetary policy," Goldman Sachs said. The bank also said it expects gold prices to rise to $1,155 an ounce, $1,220 an ounce and $1,320 an ounce on a 3, 6 and 12-month horizon. If you ask me, gold setting another nominal record is virtually a lock in 2010. Which begs the question, are you positioned to take advantage of the move? Ensure your portfolio has solid exposure to the gold in both bullion and equity form. Bullion wise, owning 1 ounce and 1/10th ounce gold coins is a great way to go. Equity wise, I prefer to invest in well-run junior gold companies. One that’s worth taking a look at is US Gold (UXG:AMEX). It’s run by Rob McEwen (one of the best in the business), and is rapidly advancing highly prospective has properties in proven regions of Nevada and Mexico. Yours in profits,
Roger Gaines |
