Gold has traced out a very symmetrical “cup and handle” formation and more often than not, that means gold’s next move will be up, and gold should challenge its recent triple top at $1,800. Longer term, look for gold to top $2,000 by my birthday (mid-March). Silver should top it’s previous high of $50 by then too. Elliott Wave converges with the cup and handle at this time and predicts the same movements. When the two are in harmony with each other, the odds are that they will call the correct move.
Am I certain that these prices will be realized? Yes. But will they happen in the time frame I suggested? We’ll find out soon enough.
Truth be told, no one can give you a rock-solid number and date based on their gut feeling or their technical analysis. Oh sure, we can be right once in a while, but the best we can hope for is to get the trend right and to understand the big picture. Here at Miles Franklin, that’s what we try and do. So when you see me make predictions, like the ones above, don’t bet the farm on them.
The best technical analysis will fall prey to the manipulation that takes place by the bullion banks and the mega-funds. They use the same TA that the traders use and then turn them against the traders to reap short-term profits. They do it all the time and the CFTC never says a word.
Still, it matters not for OUR readers because you already know better than to trade this market. Don’t listen to those who tell you that buy and hold doesn’t work; it does. It has since gold was $252 and silver was $4.50. If you must trade, do it the way Jim Sinclair suggests – sell up to 25% of your metal at the tops and buy it back at the bottoms. I take the easier path, the one that Richard Russell writes about. Never sell your physicals, unless you need the money. They are to be set aside and kept – until the market tops out, a few years down the road.
The following graph is proof positive that the bull market is powering ahead. China is the elephant in the room. They are rapidly accumulating gold and along with India, will soon consume most of the gold that is mined every year. Pity the majority of clueless Americans who refuse to acknowledge the importance of adding gold in their portfolios. By the time it dawns on them that it is the right thing to do, it will be so expensive that they will probably shy away – or maybe buy silver, which will look more affordable.