philzuco

Calling It Quits on Gold, Platinum - It's Time to Go Financials!

Dan, you obviously have no clue. Your article on "going long the financials" was essentially the PIVOT HIGH in the financials. Gold and silver are the place to be right now. The Summer months are a perfect time to pick away at weakness ahead of what will certainly be an explosive 2H 2008 for precious metals as global inflation starts to explode. Double-digit inflation is no longer a prediction by doom-and-gloomers. Upcoming price adjustments are making the news everyday. DOW Chemical recently announced that it is planning an across the board 20% increase in its prices. 20-year Notes have recently broken down from a multi-month head-and-shoulders pattern. Yields are beginning to spike as the bond market begins to price in a future of higher inflation. Also, check a chart of the US Dollar Index -- it is literally at resistance in a very long downtrend. And there is no fundamental reason why that should change. The risk-reward right now is very good on a bet against the dollar (or, namely, a bet in favor of gold).
Gold has still not responded given that it is in its traditional "Summer dolldrums" basing period. Come August, however, we should begin to see an explosive move higher. I want to be long DGP right now just in case we happen to start drifting higher ahead of August.