The new year has started off the way I thought it would. Gold went up in the Asian trading to start the year off, and now it has cascaded to the bottom of its range. Support stands for now, and I would use this move to buy gold and silver at these prices for maybe the last time. Once the big monie is finished arranging itself the prices are set to sky rocket. Everyone is now comfortable with oil prices but the price will continue to rise. America has a strong tolerance for pain so I am sure $4 gas will not worry anyone much.
It is almost time to start the '11 Gold Bull Run. Support has pulled way back, but the dollar has not made any gains. This is interesting, as for the last few years any gold pullback led to dollar strength. The dollar is not what she used to be. Investments into major corporations by other major players are dominating trading as we speak. Shell wants to see how low oil will go, and Carlos Slim wants in Silver's Argonaut. He is going to use a miner to gain his wealth, and miners should do well this year. Spot will end up being the ultimate store of value, however.
Slim must be salivating at the chops today. He has made monie off of collapsing empires before and will not see America's go to waste. I am sure he and his US buddies Summers and Rubin are up to something. This pullback gets him and his buggies what they want, an opportunity to buy, They will BF'nD, if you didn't know. The big monie is already in precious metals, but they want more. They always want more. Now that support has been tested the price action should see gold and silver making an epic journey. As long as the recovery lie is still in place the gold will be used as leverage to prop up the system. Treasuries and (M)ortgage (B)acked (S)ecurities are about to get the short end of the stick. Gold is the only asset the Central Banks have that is not worthless.
You da man... Gotta say you made a good call on this one. How soon before we're off to the races again?
ReplyDeleteWe could consolidate here for a week or so before we pop back to the top of this range, at $1420. The range is wide and the reason is there has been a lot of buying and selling through it. This makes for a great bottom. From here we should see a move to $1440, a pause and then a move to $1500 that should be how January ends, $1500. Then they will send Blythe out to maake some cash off of conslidating the next range.
ReplyDeleteThe more consolidation the stronger the support. This is the ironicie of gold manipulation: the more the manipulate the stronger gold gets in the long run. The past best example was in the 60's when the US and Britain tried to keep a low gold price by dumping gold. The other gold bugs stepped in and bought every time and solidified the price. This is like what China, and now Slim, have been up to, Buying the dip.