Gold Retraction Part of Usual Cycle

The fundamental behind gold & silver are still strong as anytime in the last decade. In fact, they may be stronger just based on foreign demand from emerging markets like China & India. The Dollar, Stocks, Euro, Inflation are all going in the wrong direction. As well, the Central Banks acquiring more gold this year than they are liquidating it makes strong legs for metals to run on.

The Dollar is rallying in the last couple of weeks but, it is still down 13% from the high of 86 in June 2010.  Stocks are down almost 6% since the most recent high in April of this year. The Euro Debt Crisis is still causing a drop in the Euro and the markets there are off in the last month. The recent 2% decline in gold from its high in May makes it the best option of the previous investments.

With the pressure being places on demand of gold by the Central Banks, China & India it gives the long term prognosis of metals a bright future. Where gold will end in 2011 is varied from an aggressive high of $2,000 to a more conservative $1,650; either way gold will cycle into a higher level outperforming the Markets & the Dollar for the year. All you have to do is figure out how much more you need to put into your Tangible Asset Portfolio before the next run.

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