Why I'm Buying Gold at $1000

To sum up everything into one line, "The Time is here."

This will be the first time I'm buying a future contract. I am going to all-in gold with all the profits I made through shorting the HSI last july. Readers of my blog will know that I do not believe in diversification. It is crap in my opinion. As I always emphasize, put all your eggs into one basket and watch your basket.

De-coupling from Oil, Dollar....

Strangely enough, gold has somewhat decoupled from everything. Other than the fact that when the market is down, gold price rises, it simply ignores the movement in oil and US dollar. I feel that this is a sign - a sign of gold bull market. It is a sign of all bull markets. Ignore everything and sky rocket. It will of cos end in a bubble like manner but before it ends, there is so much money to be made.

But... Is it a bubble forming?

Some may argue that this is a bubble forming. As always, I face lots of funny opposition when I give some crazy thoughts about the market. But it is only at 7-8mth high.

Lets reflect on some bubbles we see before.

1. China Market - more than 100% for two yrs. PE at 90. Bubble? Yes

2. Dot Com - similar to china market

3. Housing bubble - subprime

4. Possible bond bubble - lowest yields last seen 40 yrs back.

You make the call. =)

Gold At $1000

Magic number 1000. We have seen that happening for oil before. Gold has to close above $1000. The close on friday was not at $1000. But believe me, it will be there soon. Real soon. It may even be next week for all we know.

Conclusion: I have talked about the reasons about gold before. I believe that you should be opened to many assets as well. I'm buying gold at $1000, are you?