It's been quite a week for the precious metal, closing at $1474.69. I was expecting a larger pullback in commodities, as were many market commentators, but it didn't happen. Just proves that trying to "forecast" prior to any move in the market is dangerous, and usually wrong especially if that prediction is popular. In other words, when everyone expects something the market will usually do the opposite.
The U.S. markets have also proved to be resilient and not showing any major pullback. I think the U.S. dollar is becoming more worthless, and in the face of that, even holding an equity has more value that holding the paper itself. What we're seeing is the beginnings of major inflation, and it will hit the markets too. This means that even stocks and the general indexes will continue their move upwards, as they too will be price adjusted for inflation.
So what to do? I continue to hold core holdings in gold stocks, as well as some of the physical metal. Silver looks like it's headed to $50 an ounce, and gold might hit $1500 next week. Will we see a pullback? We might, but I'll use that opportunity to add to current positions.
Stocks that I particularly like and am holding. (closing prices as of Friday, April 8, 2011)
CRJ - Claude Resources - $2.47
SGR - San Gold - $2.92
ORM - Oremex - .375
K - Kinross - $15.90
NGD - New Gold - $11.00
Stocks I like, but don't currently own.
BRD - Brigus Gold - $1.59
BSX - Belo Sun Mining - $1.45
YRI - Yamana - $12.74
OSK - Osisko - $13.34
RVS - Riverstone Resources - $1.02
LEX - Lexam VG Gold - .94
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