Gold Hit $1,000! Oil Hit $110!

March 13th, 2008

I knew gold was going up.  I knew it.  I didn’t THINK it would go up.  Somehow, I knew.  I didn’t know how high it would go up and how long it could take, nor did I know if it would go down sharply first.  So, as a precaution, and since this was my first time using a forex broker to buy gold on margin, I only risked $100 USD to purchase 3 ounces of gold (1 oz. @ $612.30 and 2 oz. @ $627.70).  That was just over a year ago.  Today I’m up a whopping 1,721.35% (gold is in the ~$993 range).  Nice.  That percentage gain may be calculated on the fly with my current account balance, which would mean it is exaggerating the gain because I only have $64.62 in cash in the account now (interest eats it away!).  Either way, my account balance is sitting at $1,177.27.    Too bad I didn’t invest $1,000 at the start.  It may have taken a year, but gold did finally reach 4 digits.  I still remember writing So You Think Gold Will Hit $1,000? I very strongly thought it was only a matter of time. 

I’ve been bullish gold stocks too, but mainly the juniors which have a whole host of risks.  Though the current gain in gold price is astounding, the stocks have yet to show!  Same thing can be said for many oil companies I’ve been following!  Oil hit $110 a barrel and yet stock prices are the basically the same as several years ago with much lower oil prices.  These price levels were both big hurdles and we have just touched them.  As expected, a retraction occurred after going over them.  Next Stop —-> Gold over $1,000 and Oil over $110.  Does the Fed honestly think it can stop both the recession and the USD devaluation at the same time?  It’s efforts to stop the recession (and housing bubble issues) are one of the main causes of extreme USD weakness.  Guess that’s what you get when you manipulate the markets… It’s quite interesting to watch the Fed dole out billions in dollars to “save” the economy.  I wonder if they will ever learn. 

PS> Computer problems and lots of work have prevented me from doing any writing for a while.  I’m hoping to get some more time in soon.  This was just a short little update post to let you know I’m still alive and kickin’ and I’ll be writing quality content (not like this short little post) more frequently soon.  

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