Dan Schmeidler

Why I Am Selling Precious Metals

I would hold Gold here and not buy anymore from here on up. But I would seriously consider adding more Gold if its spot price would drop to around $800, and then more around $750 (if it ever gets there) and so on. I am certain that there will be a whole lot of other willing sellers of Gold at $800 (in the next few months). It is understandable considering how the markets expect currencies to strengthen, production to pick up and the US to come out of a recession by mid-year. Just in case it does not happen, I am adding to my Gold position. If it does happen, I would still hold on to Gold, unless the Fed Funds rate was to stay (well) above 5% or 6% for an extended period of time.