• Gold In 2011: Short- & Long-Term Analysis

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    Gold and Precious
    Metals

    UUP
    Dollar Chart

    US Dollar
    Analysis:

    • 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.
    • Still,
      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
      in GOLD.
    • My SuperForce
      Analysis in the paper currencies is designed to enable you to
      enlarge your real asset positions.

    SGOL
    6 Month Price Chart

    Gold Bullion
    Analysis:

    • 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
      profits.
    • 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.
    • Longer
      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
      2008 forward.
    • Consider
      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?
    • The
      Federal Reserve System cannot survive without inflation. The day
      they stop printing as policy, the whole system collapses.

    SGOL
    14 Month Price Chart

    • Analysis:
      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
      confidence.

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    the rest of the article

    January
    1, 2011

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