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Gold Blast off Today: Up $60.

The gold mining stocks blasted off today. The HUI was up nearly 10%. Clearly the miners are going to follow the price of gold higher. The HUI is not far from it's lows. It is still a good time to get in. Sure this could be a false breakout, but if the price of gold is heading higher, then gold mining stocks are going to participate.

I still think that the mining stocks could be one of the best investments this decade. It doesn't look like that if you look at most of the mining stock charts, but today is a sign of what could happen. If the miners are going to blast off every time gold blasts off, then the returns could be spectacular.

My projections are that you could through darts at the top 50 gold mining stocks and make 500% in this sector. The miners are valued as if gold is going to $1200. When gold goes to to $2000 (my expectation), the miners are going to blast off. It is highly unlikely that the miners will not participate in a gold rally.

Sure, there is always the chance that gold languishes and never makes a new high, but that is not my expectation. Not with the Fed buying up the Treasuries and thinking that strategy is going to work.

An easy way to play it is GDXJ (Gold Mid-Tier ETF) and SIL (Silver Miners ETF). Both were up 10% today. I bought SIL at $23 and thought it was a steal. Today it is at $15.

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