This week’s grocery ads contain a sale on t-bone steak at $5.99 a pound. This is the first such sale in quite awhile up here. The t-bone indicator thus suggests a gold price of $599 an ounce.

I am bullish on gold as a long-term wealth preserver. Gold should be held in most portfolios as it is an excellent way to reduce portfolio risk. Perhaps 10-20% of a portfolio in gold will suit many people. Gold is thus a long-term hold.

In the short-term, I am moderately bearish on gold’s prospects. It is clearly better to be buying it now in the low 700s than when it was 800-1000. It will be even better if we have the opportunity to buy it in the 600s or 500s.