We are in A New World & even if Precious Metals do not go up although I believe GOLD will hit 2500 in 2012 but assume they stay at these levels and im wrong and Gold is at 1500 most of the companies with good management, little to no debt these companies are going to still have great quarters and revenue growth.
I do NOT trust China, June 2012 they open their own precious metals Exchange so they can buy Gold Silver Palladium & Platinum in their own Currency.
They are taking very strong measures to become The World Reserve Currency & the New Japan China Currency pact is designed to do just that
They signed a deal in Afghanistan for OIL & they are really pursuing influence throughout the world.
This ties to Gold & Silver & even Rare Earths which just had a huge run. REE almost doubled this week.
I do believe we may see a correction in Gold & the risk trade will be on in the DIA SPY QQQ for the 1st and MAYBE 2nd qtr although we have seen a HUGE rally already. DIA up 11% in 3 months.
I'm all about any improvement in America but the last jobs number was a joke!
People only read headlines & not the underlying issues.
I'm not a gold bug but holding gold & silver as a long term investment is a preservation of wealth.
There are many miners that have outperformed GLD & SLV and made quite a bit.
Most miners have a higher Beta so you need the stomach for volatility & for those who want the exposure to the entire sector can go into SIL GDX & GDXJ. Then there is NUGT 3x Velocity Bull Miners & DUST which is the Bear inverse 3x as well in the mining group.
There has been a disconnect with the USD UUP or UUPT & USO / OIL which maybe temporary.
These stocks jumped right out of the gate this last week which was the first week of trading in 2012 & waiting for pullback. The USD is still the most liquid market throughout the World and we may see massive inflows into the dollar if we have the EUO which is the Euro Short that I recommended over 2 months ago in my older stock talks along with the miners back in November & I recommended SWC PAL REE but rising dollar may hit Gold.
Again we are start to seeing a disconnect and most of. The Reagan Era guys are scratching their heads & just coming to terms with the fact that there are other countries in the World.
I think you should also look at HL Which is one of the very few that pays a dividend.
I use to work on Wall Street at Morgan Stanley and I hope we can get a pullback. It seems risk trade is on and technically we are in bit of bear territory so I'm a bit more cautious.
Either way prices for 2012 on GOLD SILVER PALLADIUM PLATINUM are volatile but look to be stable for 2012 which means profits for miners.
We need to watch the Eurozone & China. If China gets hit commodity stocks along with the market will have a pull back.
What people do not understand is China will have their problems but they will also have their solutions. They are the 2nd largest Economy in the world with a revised annual GDP for 8% for 2012 which dwarfed that of Japan.
They should not be taken lightly & that may add to the catalyst of the rise in Precious Metal Prices. In Forbes Magazine a few months back the Finance Minister of China openly accused the U.S & EU for surpressing the price of gold and it should be at 5000 an ounce and silver should be between 6-900 an ounce depending on demand given all the fiscal deficits we have & unfunded liabilities.
One day will come when China no longer needs to rely on us or need to buy our debt.
Another HEdge is ticker HDGE and gor Gold there is GLL which is more volatility that bets on GLD going down.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.