GOLD AND SILVER INVESTING FOR 2008 (AND BEYOND?) : eBay Guides

As I write, spot gold is well within reach of an all-time high (excluding a cost of living adjustment). Spot silver is tracking gold's advances, but has a long way to go to reach an all-time high. Some experts (e.g. CMI and Citigroup) project gold to hit $1000/oz in 2008 based on a probable resurgence of investing in precious metals (that is not to say that I necessarily trust these "experts"). In support of their position are high oil prices ($100 per barrel), the falling dollar (almost a buck-fifty against the Euro now), high unemployment, credit fallout (subprimes), and global economics (especially China's and India's demands due to their movement towards economic growth).

Anyone who has been watching the markets over the last year knows the economy is on a roller coaster ride. Gold and silver prices are riding that roller coaster. With respect to precious metals, I would expect to see some new (relative) highs, but I would also expect to see some fairly sharp dips in 2008 as well.

My view on investing remains the same as it has been over the last 3 years - even in this bull market of precious metals. Continue to invest. As long as the economy remains more or less stable - which involves ups and downs - gold and silver prices should remain within a plus or minus of 10% of current levels. Because the US economy has a long way to go to reach the stability it had pre-2000, I believe the metal's markets are likely headed upwards in 2008.  After that, well, who knows? But if gold hits $1000/oz and silver is close to $20/oz, it'll probably be time to cash in.

UPDATE: HOLD EVERYTHING!

Well, this week (Feb 23, 2008) gold hit $950/oz and silver topped $18/oz. The price of a barrel of oil hit a record ($101 p/b). The US is still at war - on two fronts. And, the real estate market continues to tank. It certainly appears that gold and silver (bullion) continue to remain one of the best investments you can presently make. Predictions for $1000/oz gold and $20/oz silver are materializing faster than expected. Did the "experts" underestimate the demand for precious metals? Could we see $1500/oz gold and $25/oz silver in '08? The way things are going, I wouldn't be surprised.