Monday, September 5, 2011

Fall Price Targets

The first thing that will happen this week will be a fall in the DXY.  Obama will slice it up during his "Jobs Program" speech.  He will spend his way to bankruptcy, and say later he didn't know any better.  He didn't study economics, anyway.  It must be Bernanke's fault.

Once that happens gold will capitulate.  It will fall back to around $1850.  Then it will catch on the strong bid of the Euro.  The Euro is the stronger currencie of the two fiat because it trades for Mid East oil and Russian oil via a land bridge.  America needs to receive their oil via sea, and this is very expensive.  The other reason is that Euro bonds are getting cheap, and investors are going to cash.  The Euro is the safe haven currencie, not the dollar, because Bernanke will print his way to the end of the road, and Geithner will continue piling on the debt.

Once gold catches a bid around $1850, and it will only take a week or so, the next move will push it through $2k and onward.  Silver and oil will enjoy the death of the dollar, as they trade inversely to it.   Silver will find itself around $100 by the winter solstice.  Gold will be at $3300.  Oil will be at $150.

The Euro will test $2.00 this time next year.  It will not be a straight shot.  The fiats will continue to trade back and forth.  Other currencie that will rise are AUD, CAD, and the Swiss Franc.   As you can tell, I think the trend will revolve around the death of the dollar.

After the dollar dies, and that should happen in about a year, then the vacuum of fiat will suck them all into oblivion.  I think the DXY will be at 66 come this winter solstice.  By that time people might catch on to what is happening.  Maybe not.


  1. Hi there,

    We lost you there for a while. I was beginning to think you had stopped posting. Good to have you back.
    I have not seen any recent thoughts on platinum; are you still bullish on it; any short and long term targets there?
    Also, I was wondering if you have read about the Pan Asian Gold exchange; do you see that as a severe threat to the COMEX?



  2. Hello JM,

    I will not stop posting. Sometimes I have to take time off from this blog though. Thank you for your concern.

    Platinum, my favorite precious metal. Why? Because no one sees it coming on. Gold is obviously important as the Central Banks still use it as collateral for their loans. SIlver has gotten popular thanks to Max Keiser (cough cough) among others. Platinum, platinum has peaked its production, which gold has too but silver hasn't, and has just as much industrial use as the other two.

    Basically it comes down to this: I do not consider the metals seperate from each other, as I think that the nominal dollar price is unattached from reality. Platinum will appreciate as much as the other two percentage wise. It is also much more rare. For allocating a PM portfolio, I would put the bulk on gold, but a large minority on both platinum and silver.