What is the outlook for gold and platinum?
*Dow Theory Letters, by Richard Russell, December 18, 2007
“As for price, gold has formed a triangle, which could be either a consolidation pattern or a continuation pattern. If it’s a continuation pattern, the next important move will be a breakout above the upper trendline. If it’s a consolidation pattern, let’s hope it just continues sideways. The problem — the last rally took gold “too far” above its 200-day moving average.
The Russell advice — as always, “sit on it, better known as patience.” Remember, we’re not holding gold to make a killing. We hold gold because gold is real, Constitutional money. Gold doesn’t need any government or central bank to state by fiat that gold is money. Forget governments, forget central banks, forget politicians — thousands of years of history tells us that gold is money — and that’s good enough for me.
By the way, platinum often leads precious metals. Yesterday, platinum broke out above 1500 to an all-time high. I’ve long recommended those pretty, shiny platinum coins. They’re kind of expensive now. Besides jewelry, platinum is used in auto catalytic converters, and the Chinese and Indians are buying a LOT of cars . I look for platinum to reach $2000 an ounce by the end of 2008.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.