It’s been nearly three months since the “drive by shooting” that toppled silver from $50 to its recent low of $33.58. The chart, below, offers hope to those of you who held on and suffered through this blatant manipulation (see article by Sprott and Morris, below).
There are five and a half months left before year’s-end and I would be disappointed if gold did not end up at $2000 and silver at $50. Jim Sinclair’s “promised” $1650 is in the bag and I believe $1850 should be the minimum resting point for gold, heading into 2012. It hardly seems possible, but gold was just $1193 one year ago today. For the first time ever, gold has breached the $400 year ago mark. Recently, gold dipped below the plus $270 mark. As I am writing this at 3:30 a.m. on Sunday morning, gold is UP $407.50 (from a year ago today). Gold finished 2010 around $1400, so if the gold market performs no better than it did last year, from now to the end of the year, we will finish the year above $1800.
Next year, being an election year, will find the politicians (assisted by the Fed) pulling out all of the stops and doing whatever they can to manipulate public opinion, markets and statistics in their never-ending quest to buy another election. They will do everything they possibly can for the next 16 months to hold the economy and the stock market together. But after the election, we should finally begin to see things as they really are and that will not be a pretty sight. Should the stock market fall apart, the dollar tumble and gold continue to rise rapidly before the election, it will be proof that things are even worse than I think they are – and the Kings on Wall Street and in Washington have finally lost control. It could happen.
The best advice I can offer you is that you should be fully invested in gold and silver (and very light in dollars) as soon as possible and then just sit tight and see how things play out. Ignore the advice from those who would tell you that the bull market in precious metals is over. The only question now is how high the metals will go and how fast they will get there. If you own gold and silver, you have already “won,” and all you have to do is patiently hold onto your investments and wait. Just go along for the ride, and it should be some ride. I assure you, if you choose not to follow this advice, the ride could be very bumpy for you.
Gold closed on Friday at a new all-time high. This is not a “typical” summer market. Gold and silver are on the move. At this very moment, gold has topped $1600 and silver has topped $40. Both have momentum going into the week. The Cartel will put up a fight at the “even numbers,” so let’s see if gold and silver can hold on to their new plateaus of $1600 and $40.
Golden Snow Bird
Susan and I have decided to move south for the winter. I am about to officially become a “snow bird” – and a “gold bug.” Cactus Jack would have called me a “golden snow bird,” a very rare species, indeed. We will be settled in by Thanksgiving. From now on, we will spend the winter in Miami and the spring and summer in Minneapolis – it could be worse! Susan always wanted to live near water. She finally got her wish. Our new Florida residence is a stone’s throw from the ocean, 28 floors up, with a beautiful view of the ocean, Miami Beach and Miami. I will continue to write the daily as usual, but often with the windows open.
I owe it all to the gold and silver industry, my occupation and passion since 1983. As good as the last 10 years have been, the largest gains lie ahead. Wait until the metals go “parabolic.” It will be a sight to behold – a wonderful thing if you own the metals and a terrifying event if you don’t. All bull markets end after the final blow-off stage, and this one will be no different. Before it is over, the “non-believers” will fall all over themselves trying to source gold and silver, and they will pay any price to own some. I hope that I have helped position my readers on the winning side of this bull market. Believe me, you do not want to face the next few years without the security of gold and silver in your portfolio.
Cactus Jack is out – Backwoods Jack is in.
I am overwhelmed by the numerous requests to bring Cactus Jack back, but it’s not possible because Cactus Jack was laid to rest in boot hill. But wait, we are in luck. I have been talking to Cactus’s best friend, Backwoods Jack. Backwoods and Cactus saw things in exactly the same way. So much so, that old Backwoods came to me and demanded that his views be heard – in respect for his best buddy, the dearly departed Cactus Jack.
Backwoods Jack will make his first appearance in these pages soon! It’s already starting to heat up between us!