Bullion Junkie

It is all over the financial news. The dollar is on a disturbing downward trend and investors are dumping their money into precious metals and other commodities to hedge against the lower dollar. Commodity prices are rising everywhere, toe-in-toe with inflation, as seen by the rise of crude oil today past $74 a barrel, and similarly for gold.

As I predicted almost 16 months ago, the continued non-confidence of the US economy is going to leave investors fleeing for more stable territory such as gold and other metal bullions. Last year around this time, gold prices were sitting at around $800 an ounce and many investors were skeptical it would go past its last high of nearly $900 an ounce. Today, we've seen prices of gold trade as high as $1,070 an ounce.

Bullions, having an inverse relationship to the dollar, witnessed a 21% rise this year. This is definitely a bearish market and as the market continues to deteriorate, there is no telling how high these wonderful metals could climb. Though far from a senior market analyst, I will lay claim that gold is still far from a bull market. It still has some ways to go as the dollar continues to bury itself in a bear market.

What is my advice to those who missed the $800 an ounce boat for gold? Stay out of it. Though I am claiming that gold is not in a bull market, it is still very high risky at this point to know where gold is heading next. All signs indicate it will climb higher, but it is extremely unpredictable. If you have missed your opportunity, I would say stay out of it to be on the safe side.