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December 01, 2005 

Riding the Bull

Do you have any gold or silver holdings? What are you waiting for?

If you haven't jumped on the gold and silver train yet, now might be the last time you can get in before it makes its way out of the station. Both gold and silver are making leaps forward, but it's not too late yet.

Gold sold in dollars has risen almost 13% this year and has gained in all major currencies. The rand, the currency of South Africa - the world's largest gold producer, has risen 80% against the U.S. dollar since the end of 2001, when gold began a four-year rally. Prices are headed for a fifth straight annual gain.

In the short term, there may be a correction, with gold maybe passing through $500, then dropping back. The real test will be if it goes through $520-$525, in which case it could possibly run up much higher. $600 may be a reality by November 2006.

Gold has only closed twice above $500 in the past 20 years. In 1987, prices closed at $502 on Dec. 11 and $500.40 for Dec. 14, after trading as high as $507.40. Previously, gold hit a record $873 in January 1980.


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