VOLATILITY, FEAR and GOLD:

We find ourselves on this Wednesday, May 12, having witnessed a week of extremely bizarre, wildly fluctuating markets; even today with the DOW soaring up 148 points. The question all traders and investors would like answered: “what next”?

I have confessed often to the fact that I am a simple short term trader with 50 years experience who is confused, perplexed and fearful for the future of our markets, and the stability of the world at large. The market experts and gurus that fill TV and radio programs, write for newspapers, periodicals and online, feed us their analysis of the market’s movements day after day. One day the Greek crisis causes a huge selloff, the next the Greek bailout causes the bulls to stampede. Unemployment, earnings reports, Europe, government and public debt are rehashed daily. Personally, I am more confused than ever. This is what I know for sure. The volatility we have witnessed recently is probably a precursor of worse things to come. The investing public is frightened and the only thing fear creates is a flight to “so called” safety. I have never been a Gold bug but the activity recently which has driven Gold to new all time highs cannot be ignored. Joe investor looks at government debt, civil unrest, European turmoil, distrust of the banks and Wall Street and the other maladies that affect our markets and says: Gold is a safe refuge.
I agree and anticipate we will see Gold at US$1,350 before the end of the year. I would recommend Junior Gold stocks and Gold exploration companies.