We head back to Minneapolis tomorrow morning, and will stay there until October. Today we are pretty busy packing up and getting ready for the move. I will publish the newsletter on Tuesday and Wednesday, but will not be publishing on Thursday and Friday. Our regular schedule to resume next Monday.
Regarding the quote by John Mauldin (see above), I tried very hard to get an appointment to fly down to Texas and meet with him. Kathy Derbes, who knew him personally and worked for me at the time, tried for months but could never get an appointment for us to discuss gold with him. He had no interest in gold at all. No interest in even talking to us about it. It tripled in price in the next few years so his “dis-interest” proved costly. His comments on gold are not especially meaningful to me. He is primarily a “paper” investor. But at least now he puts some value on it and admits that down the road it will be very valuable. I guess he finally woke up, after residing on the outside for most of the12 year old bull market.
Today was “typical.” Gold rose rapidly in Asia and was brought back down to earth in New York. Still, it finished UP by nearly $20. Larry Edelson came out again with another warning that the market will drop much further – before it resumes its bull market trajectory launching it over $2,000, way over.
It’s the same story. Who do you believe? Larry and his technical analysis or Jim Sinclair and all of the people you read in these pages that focus on the fundamentals. The fundamentals are very gold friendly. Edelson was on the money so far, but he did get “a little help” from the Fed, Goldman Sachs and Merrill. Without the massive intervention and manipulation of gold and silver last week, he wouldn’t look so infallible.
Let’s say it’s a toss up now and let’s see if gold holds above $1,400 and can top $1,500. One thing is for sure, the physical market is on fire. Check out the silver sales, below. If the “paper” market can control the price, the Cartel would never have allowed gold and silver to rise from their lows, in 2008. I’m siding with Sinclair here; physical demand will rule the paper game at the Comex.
The last time we faced shortages and delays like this, in the fall of 2008, gold and silver rocketed up to set new all-time highs. Will history repeat?
The U.S. Mint just updated silver sales through Friday. Now on pace to be the fourth largest month ever; and the largest non-January month.
I am inserting the article below by Richard Russell (who I have followed since 1983) directly after my column because most of you read only my comments. I want to make sure you don’t miss Russell today. This is a very powerful piece and philosophically, I agree with it to the core! His conclusions are great for gold and pretty awful for everything else. Yes, that is how he sees it, filtered through his 60+ years studying the economy and the markets.
And don’t miss the Casey Research article Gold Crash 2013 – Deliberately engineered? It is one of the best analyses I have come across; highly recommended!