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-- Posted Monday, 4 April 2011 | | Source: GoldSeek.com
Sell, buy or hold are the classic investment dilemmas but they are particulary accute for gold and silver bugs at the moment. Long-term investors maybe tempted to take short-term profits because the ending of QE2 threatens a big hiccup in financial markets that will likely drag bullion lower. On the other hand, there are very clear signs that silver in particular looks at the base of a parabolic price spike (click here). And the upside targets of $5,000 gold and $300 silver are attractive magnets (click here). 31-year high The problem with cashing out is that this also looked a logical step last summer and prices have runaway again since then. Silver has had its best six months for 31 years. Leading gold bug Jim Sinclair is not such a help as his bullishness never stops and landed him in huge trouble when the price of precious metals slumped in late 2008. However, a buy-and-hold strategy is the only way to profit in a bull market where you cannot accurately time the ups and downs. Therefore the professional gold bugs argue that right now investors should be holding onto their precious metals and be ready to buy more on any price weakness. It is possible that this weakness will never come, and that is the reason to hold on even when a downturn seems imminent. Historical precedent None of us ever really know the future, we can only make an informed guess based on past history and in the case of experts like Mr Sinclair a lifetime of experience. Could precious metals never dip substantially again? You could envisage a rapid deployment of a QE3 program of money printing in quick response to another financial market mini-meltdown that would push gold and silver prices up again with hardly a blip, and then most of the investors waiting on the sidelines would miss this boat yet again. Of course, that might still be the opportunity to pick up shares in the gold and silver producers that have underperformed relative to the physical metals recently. The ArabianMoney newsletter focuses each month on the best ways to profit from precious metals and keeps its readers up to date with changing trends like this (click here).
-- Posted Monday, 4 April 2011 | Digg This Article | Source: GoldSeek.com
Previous Articles by Peter Cooper
About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in
1999 to complete his first book, a history of the Bovis construction group.
Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.
 Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.
He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.
Order my book online from this link
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Why this is a tricky time for gold and silver bugs
