Gold and Silver Rally Overextended or Just Getting Started?
Posted on | October 19, 2009 | 1 Comment
Gold and Silver are slowly becoming mainstream news when it comes to investing. Many investors are wondering if these precious metals are overextended or just getting started. The precious metals doubled bottomed back in November of 2008 and have moved almost straight up since. Since November Gold is up over 43% while Silver is up an astonishing 84%! During that same time period the S&P 500 is up almost 28%.
WIth this in mind, has the current rally seen its finer days? When looking at history one can make the educated guess that the precious metals need a healthy correction or sideways period before moving higher. The current 11 month rally has produced some spectacular gains but there is plenty of room for a pullback. Gold recently broken out to new all time nominal highs which has caused most of the media hype.
With the media hype and the duration of the rally now is the time to see these investments pull back. Jim Rogers along with many other commodity bulls recognize that the precious metal is not even close to being over but buying right now is quite risky. If you are an investor who wants to make money over the next several years I would urge you to consider investing in precious metals. If you want to make money over the next few days or months you might be jumping into a risky situation. Overall, I fully agree with Jim Rogers in that gold will go to over $2000 an ounce but there will be pullbacks along the way.
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Author: Heather Best
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October 20th, 2009 @ 8:08 am
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