
The reality is that gold has made such a continual upward move over the past several years that speculative fervor is evident, and the fact that gold is now a front-page story makes it susceptible to near-term pull-backs. Nonetheless, it can correct all the way down to $1,200 per ounce without violating any long-term trendline.
INVESTING LESSON
As in 2006-2008, when real estate schemes were all the rage, investors need to be careful when any asset class receives so much attention that your cab driver is talking it up. We will continue to add to the precious metals area at opportune times during 2011. On a related note, our Lithium ETF position has done quite nicely since added to our mutual fund portfolio.