A Gold Price Forecast of $7000.00/oz by James Rickards

James Rickards explains that approximately 1.5% of major investment holdings are in gold, leaving massive room for demand growth. According to Jim, if this allocation percentage as little as doubles, the price of gold could easily double as well.

Jim's research and analysis indicates gold will reach at least $7,000 per ounce on a mid-term time line. He recommends a personal allocation of 10-20%.

Please click here to watch the video. 

Those of you who read us on a regular basis will be aware that we are don't consider gold and silver as a 'part' of our portfolio, it is all of our portfolio. We have no holdings in the general stock market and do not diversify from metals. So dear readers you would be wise to consider us as extremists in our beliefs and investment philosophy as it won't suit most people.

Simply put, our strategy is to hold both physical gold and silver, along with a selection of quality mining stocks and the utilization of the options market to add a little spice to our portfolio. You have been warned!

Have a super day. 

Regarding www.skoptionstrading.com. We are off to a good start with our three positions showing profits of 62%, 26% and 2% on Wednesday, moving higher on Thursday to show profits of 67%, 30% and 6% respectively.

So on Friday we closed two of these trades, the first gave us a profit of 71.58% and the second gave us a profit of 33.97%.

Its nice to bag a couple of winners before January is out and hopefully 2012 will continue in a successful manner. We do have a number of ideas on the drawing board which we are looking to execute shortly, but only when the risk/reward environment is firmly in our favour.

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Our performance stats have now been updated as follows:

Our model portfolio is up 446.55% since inception

An annualized return of 98.38%

Average return per trade of 36.68%

96 completed trades, 88 closed at a profit

A success rate of 91.67%

Average trade open for 50.48 days

 

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Comments

[N]

I bought gold with CAD $ when the CAD $ was less than the US$ (which is usually the norm in Canada)... but the gold's ultimate worth is held hostage in US$. Now that the CAD $ is above the US $ if I sell then I lose money. If the US$ goes down even further then so does the value of my gold . Where is the sense in holding gold for safety in US$?

[fallingman]

Extremists!

Good on ya. I've always thought...and I was a broker, mind you...that the obsession with diversification as some kind of magic provider of "safety" was a crock. This viewpoint represents pure apostasy...I realize that.

And I'm REALLY dubious that focusing on diversification will be of much help at all if/when the SHTF.

Alternate approach: Study like hell. Identify the likely winners / winning sectors, invest heavily, and then practice basic money management techniques so you don't lose it all if your timing is off or you were just plain wrong. That's my strategy. No guarantees, but it's worked so far. (I also sell options and maintain a pretty big cash position when things look unfavorable for what that's worth.)

Those who think they're protected somehow because they're diversified among stock sectors or stocks and bonds or even stocks, bonds, real estate and a little metal, are dreaming. That's just propaganda that's required as part of the con the financial wizards are running.

Diversification between countries and institutions? Absolutely. That's far more important than among asset classes IMHO.

[Gold Prices]

Well said and when you look at the performance of the stock market in general it hasn't made any gains over the last ten years so why would anyone want to be there.

[Edmund]

Good . Let's wait for it to come