Gold breaks $500, another price target and prediction comes true

Posted on November 29, 2005 , filed under Stocks | Print This Post

While checking kitco.com I saw that gold broke $500 in an overnight trade. I saw this article titled “Gold Tops $500 In Overnight Trade” posted a few minutes ago by Morningstar.

Here is a quote from the article:

Spot gold and gold futures topped $500 an ounce in after-hours trading Monday, passing an important psychological barrier that hasn’t been eclipsed in almost 18 years.

As I predicted earlier, I believed gold passing $500 was not a question of if, but when gold would break $500. I went on to discuss my gold strategy if the metal were to break $500. It seems that if gold can maintain a price over $500 we will enter the third phase of a bull run as I mentioned earlier. The above Morningstar article mirrors one of my beliefs that gold breaking $500 is an important psychological milestone. I will be monitoring gold and expecting a huge surge up once speculative individual investors take notice and analysts jump on the bandwagon.

I wrote earlier:

It sounds like gold will break $500 soon. As I indicated in my earlier posts about gold, I believe gold is entering the third phase of a traditional bull run. I expect to see a frenzy of speculative buying when gold breaks $500. Once we see analysts who will tout gold’s never ending rise, we will have clearly entered the third phase. Heavy institutional buying, global fears over bird flu, terrorism, and positive consumer sentiment about gold as an alternative currency, will fuel an 80’s like speculative third phase bull run.

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