Having overcome a slight pullback heading into the fall gold prices now appear to have resumed their upward trajectory and will likely hit $2,500 an ounce next year – if not sooner.
Gold prices surged to their highest level in more than a month yesterday (Wednesday), capping off a four-day bull run that's taken the yellow metal to more than $1,700 an ounce.
In fact, gold for December delivery yesterday rose $19.40 an ounce to settle at $1,719. Meanwhile, December silver surged to $33.39 an ounce.
Gold prices plunged 20% in September, leading many investors to bail on the gold bull.
Of course, if you're a frequent reader of Money Morning Private Briefing this came as no surprise to you.
The Aug. 22 issue of Private Briefing didn't just predict the September pullback, it offered investors a strategy to insure their gold profits before the price collapse. Investors who followed our advice saved themselves a small fortune.
Better still, we knew better than to bail on the gold bull altogether. So on Sept. 27, at the apex of the yellow metal's staggering decline, Private Briefing came back again – this time advising investors to build on their precious metals positions.
In an interview with Money Morning Executive Editor William Patalon III, Global Resources Strategist Peter Krauth suggested investors wade back into the precious metals market during any dips.
"Bill, what I'm saying to them is this: "If, at this point, if you don't yet own any gold and/or any silver – or if you feel that you don't own already enough – I'd suggest adding at these current [gold-and-silver price] levels'," Krauth said. "Now, I'm acknowledging that it's possible that both could go lower still. So I'm recommending that they buy in "tranches,' or increments, with the goal being to subsequently add to those positions in the weeks and months to come."
True to his reputation – Krauth became an instant favorite among readers when he labeled silver a "Strong Buy" back in 2010, when it was still trading at $19 an ounce – Krauth's advice was spot on.
Gold is back – and Krauth's 2011 price target of $1,900 an ounce is still intact. Longer-term Krauth sees gold prices hitting $2,500 an ounce.
So it's not too late for you get in on the action. And to help you, here are some suggestions on how:
If you're interested in buying gold coins or bullion, Peter Krauth himself published a report on the subject for Money Morning last year.
If you're looking for something simpler, you might consider the SPDR Gold Trust ETF (NYSE: GLD). This ETF, which tracks gold's price moves, has become a bedrock investment over the past three years. It's up more than 20% just this year alone, and figures to go even higher.
And if you really want to make the most out of gold's record-breaking run to $2,000 an ounce you can sign up for Money Morning Private Briefing to find out the gold play Krauth is really excited about.
Like GLD, this stock also is already up more than 20% this year. Better still, Krauth also recommended a silver play in that Sept. 27 article that is already up about 10%.
So click here to sign up for Private Briefing and gain access these picks and more.
News and Related Story Links:
- Money Morning:
Load Up On Gold and Silver as Bernanke Dives Off the Deep End - Money Morning:
The Gold Price Conspiracy Uncle Sam Doesn't Want You to Know About - Money Morning:
Now is the Season for Investing in Gold-mining Stocks - Money Morning:
Why We Know Gold Prices Are Headed Higher - Money Morning:
The No. 1 Way to Profit as the Price of Gold Soars Into Record Territory
Will the private briefing be able to tell an investor what 'long-term' means? In short, when will gold hit $2500 an ounce…..2012? 2015? 2020? or later? I believe that the $1900 level in late 2011 can be reached, but then what? Now that would be most helpful…….and worth a private briefing.
I am French and I have too the MoneyWeek Newsletter in France.