Silver closed at $8.07 per ounce on Thursday, and gold closed at $485.70. Pardon me for rubbing it in a bit, but I told you so. (See my August 6, 2005 post.) Since $8 is a psychological barrier, there will likely be some profit taking for the next few COMEX market days, so if you missed the boat, you may be able to buy on the dip. But then get ready for the bull to resume his charge. I am still convinced that the metals are just a few years into a long term “secular” bull market. NewsMax reports Gold is already up more than 11% this year. Meanwhile, Bloomberg reports that gold’s rally this year has exceeded the paltry 2 percent gain in the Standard & Poor’s 500 Index. U.S. Treasuries have returned 1.7 percent, heading for the worst annual performance since 1999, according to Merrill Lynch data.
My prediction: Silver at $40 per ounce by the end of the second term of the Bush administration. I’m not kidding.