Gold and Precious
- The Dollar
rally has continued to fail over the last couple of weeks.
- The Fed
will print until the dollar is worthless, because that is their
business. My richest contacts believe the dollar is going to ZERO
within 20 years.
- The Federal
Reserve, with the absence of a Gold Standard, is the worst financial
system devised by mankind, or should I say, monster-kind. There
has never been an audit of the monster, and there is no safety
mechanism to limit how much your Fed can print.
the weak volume on the price decline in the USD over the last
few days indicates a short term move higher is likely near.
- A stronger
dollar into the first few weeks of the New Year will allow a correction
- My SuperForce
Analysis in the paper currencies is designed to enable you to
enlarge your real asset positions.
- Gold has
appreciated very nicely over the last few days. Further strength
will generate a short term profit booking signal.
- My intermediate
downside target remains 1260, followed by a blast to 1500.
- Note the
solid volume-based support on the above SGOL chart. Volume
is the single most important technical indicator, and the most
ignored indicator because it isn’t flashy. I would ask you
to consider that profits are flashy, not squiggly lines on a chart.
Get “intense” when looking at volume, if you want intense
- The Gold
fundamentals couldn’t be any better. Big Government means:
Big Gold. My 1260 target is a gift to you, if it happens. I see
short term excessive bullishness in stocks and commodities; and
the making of an improving dollar over the next month or so.
term, the policies of the government in the US are starving the
economy, failing in job creation, and feeding inflation. The “Shovel
Ready” jobs are nothing more than Black Hole spending from
the inflationary Black Hole projects; spend 10,000 dollars to
create 3000 dollars of economic activity. I own a manufacturing
company. I don’t pay 10,000 dollars to get 3,000 dollars.
I wonder how eager the US Congress would be to spend 3 dollars
to get 1, if it was their personal funds that had to be spent?
Federal Reserve System cannot survive without inflation. The day
they stop printing as policy, the whole system collapses.
A long term BULLISH picture, with a short term warning.
- Note the
MACD working off the overbought condition. What has developed
over the last week is very light volume and strong price performance.
That’s not ideal for future higher prices. Volume is light
although this is traditionally a light trading week.
- I will
continue to shave profits off as the market moves higher and will
start the SuperForce power 2 re-buys on weakness, meaning
I rebuy every 2% down, because 1260 is only the ultimate possible
target, not a guarantee.
- If you
are an investor who is light on bullion and other real assets
you likely will have an opportunity to buy this correction with