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Update On Guns, Gold And More Gold
By: Money and Markets   Wednesday, April 29, 2009 10:24 AM

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Today, I want to leave you with updates, including interesting charts, on three of my Money and Markets columns. If pictures are worth a thousand words, these three charts speak volumes.

And when I say “leave you,” I mean that this is my last column for Money and Markets. From now on, you’ll find me over at Uncommon Wisdom — where I have ANOTHER chart you should see. 


Update #1:
Guns …

First, a follow-up on my “Gold, Guns and Spam” column. In that Money and Markets issue, I said it might be a good

time to buy gun manufacturer Sturm Ruger & Co. (RGR), which ended last week up 34.7 percent from my March 4 mention.

Now here’s the good part … recently Ruger went up even more — hitting a 52-week high — then it pulled back and tested support …

Support is holding, and it looks like Ruger could be ready to make an even BIGGER move to the upside.

Why? Because guns are flying off the shelves! Sales at Sturm Ruger surged from $144 million in 2007 to $174 million in 2008. On top of that, the company had a $48-million backlog of orders at the end of the year.

If you didn’t buy Ruger the last time I mentioned it, you might want to consider adding it to your portfolio now.

Update #2:
Then There’s Gold …

In my February 11 column “Gold and the Fear Trade,” I talked about how gold was tracking the U.S. dollar. Both had become refuges for investors worried about the stock market.

It’s unusual for gold to move with the dollar. And sure enough, that relationship has changed. Now, the dollar may be entering another slump. And gold is at an important inflection point that could send it much higher.

Take a look at this weekly chart …

I thought gold’s recent downtrend would find support at around $800, maybe as low as $765.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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