A reader (many thanks) gave me a nice link to some historical gold graphs (hat tip to kitco.com, click here). Here's the one for 1978. In my previous post I went thru some of the parallels between 1978 (Carter mid-term election) and 2010 (Obama mid-terms).
The gold chart shows a quite nice 22% run from mid-July ($185) to (being conservative) mid-October ($225). 22% up from the recent lows (call it $1160) takes gold to ($1410). It could definitely happen this year (who knows what the actual probability is?). What kind of catalysts could trigger such a lift-off?
I wonder how much $1300 Dec 2010 GC calls currently cost? Anyone out there going to leverage up (with part of their portfolio) and make a bet on a steep rise in the price of gold this fall?