M I S Q S

Well the past three days have seen Precious metals make a roaring run up.  Gold traded just shy of $1,250 with Silver right under $20 an ounce.  While I have been expecting a move, the recent EU/IMF bailout talk of $1 trillion for struggling EU Nations has shown that the US dollar is not the only Fiat currency around.  Inflation fears and continued deterioration of the EURO have frightened not only investors but us common folk into fleeing to safety.

I would expect a little bit of a breather, but continued upward movement should show up sooner rather than later.  Expect the EURO to continue to decline against the USD.  I have read reports where traders, money managers, "expert" analyst expect the Euro to trade evenly with the USD (yep 1:1).  I would expect the Euro to fall to the 1.15 range and will re-evaluate then.  Currently the Euro is at 1.25.

In my personal opinion it is not to late to buy metals as I still expect Gold to reach at least $1,500 and Silver should hit a short/mid term high around $25.

Personally, I am selling part of my Gold assets at this time, not because I believe the market is going to head down from here but because of several financial considerations that require me to free up cash.  Since the majority of my liquid net worth is in metals, it means I have to sell some.  However, once I have taken care of these short term commitments, I will be buying more metals again.  I have actually known that I would need to sell some of my metal holdings in order to payoff some financial commitments that are coming due, and luckily I have been able to hold off until now.

One of the reasons I originally bought the metals was to meet these (at that time) future obligations.  As things worked out, I am out 25% of actual cash investment to payoff 100% of these commitments which means I have more metals than I needed. :)

Anyway, keep watching the markets and listen to the news.  Extrapolate from the news what is going to be happening in the near future and make your investment decisions from that.