2011 and the New Year – Is Gold in Your Investing Future?

Just when we thought gold would go up forever in price, there was a little bit of a pull back in mid-December of 2010. No not much, but certainly enough to question the bull-market gold investing gurus. Interestingly enough, most of the long-standing experts in the gold market have been telling us that gold has been looking pretty toppy since mid-June of 2010, and yet, it just keeps going up.

So, what’s this rally all about? Well, it does look over sold, but remember China is a big player and they’ve been buying lots of it, and they are not alone on the World-Wide market for Gold. So, where does that leave us little investors these days? It seems with muni-bonds in trouble, and this year-end 2010 rally coming to a close, we could see a 7-10% pull back in stock prices for our 2011 January barometer, or perhaps it will all wait to come crashing back down and right-sizing in February of 2011.

Meaning Gold, might turn back and run again, perhaps run hard. And on the currency markets, the PIIGS are still running down the Euro – Portugal, Ireland, Italy, Greece and whooyah Spain, that’s a lot bigger than any of the others, and the IMF doesn’t have it, the EU central bank doesn’t want it and the populations of Germany will have a fit if they have to foot the bill, and don’t look to the US, we have our own problems.

What does all this mean? It means there will be continued interest in Gold and more will seek refuge in that shiny metal. What’s that famous line in the Science Fiction novel; “It’s amazing what these humans will do for a little shiny metal!” So, does that mean the gold markets are bubbling? Yes, one could say that, and as the US economy returns, and the Asian markets grow, maybe gold might come back down to Earth. (in full-disclosure, I do not sell gold products, and it is not where I put my own money). Still, I am not here to talk you out of it, rather to get you to think rationally about it all.

Yes, 2011 will be an interesting gold market indeed, silver markets too I suppose, although I’ve not followed it as closely. It is my hope that you will please consider all this and think on it. Perhaps, take a serious look at gold, but be wise with your investments.