This is an excerpt from an article I originally published on Seeking Alpha on November 21, 2011. Click here to read the entire piece.)
Bill Fleckenstein is my favorite investor in gold and silver (he is on the board of directors for Pan American Silver Corporation [PAAS]). In his latest post on gold, Fleckenstein broke down some economics of gold mining to suggest that shares of gold miners may be ready to surge.
It appears analysts are finally increasing their expectations of future gold prices. For example, “…Citicorp raised his long-term gold price assumption to $1,050 from $950 and over the next four years to an average of $1,437.50 from $1,156…” Citicorp also analyzed a scenario with a long-term gold price of $1850… {snip}
These prospects may change my trading strategy on gold as well. To-date, I have held onto a core position in GLD (SPDR Gold Trust) and traded around it with shares in gold miners, particularly Goldcorp (GG). {snip}
(Click here for my archive of articles on gold.)
Source: FreeStockCharts.com
Be careful out there!
This is an excerpt from an article I originally published on Seeking Alpha on November 21, 2011. Click here to read the entire piece.)
Full disclosure: long GLD, SLV, PAAS