Gold Reconsidered

Recent price volatility has caused investors some concern but, argues Doug Casey, short term price action is no great worry. What does matter for investors is the relationship between gold and the US dollar.

A couple of weeks ago, with gold knocked as low as $416.10, resource investors were wondering just how low gold could go. Now, with gold rebounding over $420, such musings might turn to questions such as, 'Can gold hold at these levels?' and 'Does it still have what it takes to hit $500 by year-end?'

While I'll share my views on the topic, I tend not to be overly concerned about short-term price action. Rather, I concern myself with finding great companies, with good financial structures, using proven exploration techniques on multiple, highly prospective targets. In other words, companies that will make you rich on process under any reasonable gold price scenario.

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