[Broken Arrow]

Gavin! I remember you from back in the day. How've you been?

In the past, I've argued that perhaps precious metal was not the best bet to make, but nowadays, I agree the climate may be more appropriate to take a closer look at it....

Now, the thing I hope people will consider is that, gold right now is at a technical high (bobbing near the $1000 mark). That's why there was a V to begin with, because people set a sell limit at or near the $1000 mark. Could it break through the $1000 mark now? Maybe. Obviously, the authors in the link believe that it's a technical sign of a break out. But then, I think it's also possible that we may see a sign of a double peak resistance....

So, what's missing then, is some kind of forward fundamental suggesting that break out is not only possible, but also probable. I used to argue there were no fundamentals, but now, it's a different story, with the possibility of inflation, as well as the potential of another spike in oil commodities.

However, because it's back at an all-time high, in my personal opinion, the trading train has already left the station. If you hold precious metal ETFs, I'm thinking "Sell" at this point, not "Buy". A bird in the hand is better than two in the bush. If you don't own any, well, I don't think it's a good idea to buy in now....

Another thing to consider is that, while precious metal itself may be a commodity, a precious metal ETF is still technically an ETF. As in, the allocation in the quantity of actual precious metal that people are trading on is controlled by the ETF company. However, it is typically designed to mirror the price of physical precious metal itself as much as possible.

As I've said elsewhere, we should definitely look over their portfolio to make sure we have some kind of inflation hedge. If you wish, buying and holding some precious metal is as good as any, but these articles are predicting a MASSIVE technical breakout (seriously? $2250?)... and I don't know about that. The article anyway, did not mention any fundamental proof that breakout is likely to happen. Speculate at your own risk.

But that's my $0.02 anyway.