Let Gold Speak up Itself

Lately, I haven't been posting anything to this blog, and the answer is simply that it has been a time to let Gold and Silver do the talking. It has been a fairly meteoric rise these past 2 months for the twin precious metals to bring them within sight of the landmark $1,000 gold level never before attained.

Even though it's nice to see the 1980 high of $850 well and truly passed, my concern now is that every expert and his dog has been forecasting $1,000 gold in 2008, and with a general concensus of opinion like that then the inclination must be to consider calling it the other way now. Not that I'm selling, as longer term the fundamentals of currency devaluation and inflation in the coming years are still in place. Even though I'm too young to remember it, 1975-76 saw gold half in price from $200 to $100 and I can't help but feel something similar may be on the cards here.

Even though I am waiting for the big stock market crash, I also think the US and UK are about to wrench one more boom out of the economy with their dropping of interest rates against whatever the massaged, official inflation figures saw. My prediction is 2010, a big crash and gold flying.

But in the absence of a crystal ball, genie or magic fairy, I'll stick with what I know and hold the gold and silver I've already got and leave it at that for the time being.