The gold catch-up is happening

Since we called the catch-up phase for gold on April 19, the gold price (in Rand terms) has risen 33% to new records of R13,300/oz this morning, and the silver price (also Rand) is unchanged at R300/oz.

Like we said then, we are in gold’s catch-up phase.  The silver price had doubled from middle 2010 to late April, and now it’s gold’s turn. We noted to readers then that:

Gold will catch up, of that we are certain.  Just like oil underperformed other commodities throughout most of 2009 and early 2010, and had various stars align in Q4/Q1, from QE2 to the Egypt half-revolution, to the spreading unrest in the Middle East, to the Libya war, gold will soon see its stars align and see a powerful rally.  A 100% from here? That would take us to levels of R20,500/oz.  Hold onto your hats, folks! And be careful to those hedge fund boytjies that are still short the juniors/long the metals.  You’re gonna get roasted when these gold stocks shoot!

Gold R20,500/oz, here we come!