Sunday, April 3, 2011

What's Gonna Happen?

I have no idea, but there is one kicker.  First we have been at the level for a month now.  Gold, platinum, silver, and oil have all been where the break will happen for awhile.  Yet who is to say when the move happens. 

Anyway, here is the kicker.  Silver could fly, and the other three could stay where they are.  I think this is a very real possibility.  Americans rely on oil to live, but if silver doubled, doubled and doubled, yes medical equipment and technology would become move expensive, but as PhD economists have told me, "So?"  Oil and food have to maintain a relatively low price, or else Bernanke is done.  Gold could move up, and Bernanke and the Fed would look foolish.  Platinum has a chance of breaking out, but $5000 platinum would look weird next to $1650 gold.  Silver on the other hand.....

What is silver was $250, and oil was $200?  What if silver was $250, and gold was $2000?  There would not be economic collapse from this, and the inflation that is running rampant would find a place to hide.

This is why I think silver is the best pick for a breakout.  All four horseman could roll higher together, but silver will lead the charge.  It has already started, as I called for $36 silver to happen "soon" over a year ago, but it will keep moving.  Will it leave the others in the dust?  Maybe.

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