The following picture speaks 10,000 words. The results will be a very high price for gold and silver – and lots of misery for lots of people. Or, put another way, when I asked a friend, who also owns a precious metals company, if he thought that Obama would be re-elected, he replied, “If he is, it will be good for business.” With three friends like Geithner, Bernanke and Obama, how can gold miss!
Gold is struggling to break out of the manipulation that is forcing it below $1,650 and $1,620 still remains a formidable bottom. Gold may be range-bound for a week or two but one of these days, soon, $1,650 will be passed and $1,700 will be the target.
We must be near the bottom because business is very slow throughout the industry. People have been lulled into doubt and complacency. When sentiment is this low, the odds favor a move up in price.
I’ve received a few emails from clients who are concerned about the losses they incurred in gold and silver since last fall. $1,900 gold and $50 silver seem so far away and the bears are coming out of hibernation led by Dennis Gartman and (short-term) Larry Edelson. They’ll be bulls soon enough. New highs will be hit in the next 12-24 months. After the election, everything changes. Everything but more debt and more QE to keep the game moving ahead. This is gold’s time. I bought more gold and silver this week and as usual, stored it with our International Precious Metal Storage Program. When our phones stop ringing, it’s time to buy. Yes, even gold bugs have a hard time buying near the bottom. It’s easier to buy with prices rising. It gives us more conviction when other people are buying too. That’s not the way to do it. We are at or near the bottom and trying to pick an exact number, even if it would be five or ten percent lower than where gold and silver are now, is not important. No one will be hurt who buys at these levels.