Gold up $17 to $974, gold and silver stocks follow

here Gold futures shot up today at 10:30 am NY triggered by a weak jobs report as it broke through 60 day highs of 960. The six month high was 980 in May 2009. Gold investments have made money over 8 years starting at $300 in 2001. Gold hit a high in the $1000 area in February 2008 but has not been able to break through that ceiling. Investors today were drawn to gold as a safe seeking asset instead of US treasuries due in part as a hedge on a weak dollar, potential inflation and recent stock market weakness. September to December is historically the strongest period for gold. Alt assets such as precious metals are increasingly recommended in individual portfolios. Gold stocks which are more highly leveraged to the gold price were up as much as 7%.
Silver was up more than 1.5% and silver stocks soared with PAAS up over 9%!
The WSJ today had an article on p R1 By Sam Mamudi providing an excellent review of asset allocation models entitled “Rethinking Stock’s Starring Role” and arguing the need for bonds and alt assets such as commodities.
Stocks are stable as of 1p NY and real estate is down slightly. Now that real estate is mired in debt for years to come, alt assets and bonds could be the money magnet.

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