Why you should keep an eye on gold

Oil and soft commodities have hogged the headlines recently, but precious metals have been consolidating nicely. So how high will gold's next rally take us and when should you make your move?

Precious metals have taken the back seat in the recent rally in commodities. While corn, soybeans, oil and other commodities were making either fresh contracts or all-time highs on a daily basis, precious metals simply consolidated. This was to be expected after the fantastic rally in gold from the low $600s to above $1,000 per ounce.

Personally, I exited the last of my precious metals equity positions at $975 per ounce and have been on the sidelines ever since (I do still own physical metals). But I believe that we are currently encroaching a good entry point in the precious metals. I'm normally not a big chart guy, but I would like to throw some charts at you and explain why I will be doing some discount shopping for my favorite mining stocks in the not too distant future.

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