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Don’t miss Bob Chapman’s comments in today’s daily. I have “underlined” the most important parts, but as you can see, most of his article is too important to miss! He has a unique way of explaining the recent developments in Europe.  Bottom line – nothing has been resolved, they just kicked the can down the road.  Hold your breath; if Europe fails, so too will Great Britain and the US.

Here is an email from our dear friend, Backwoods Jack.
DOW to reach 13,500 maybe plus the 3rd week of January and in the spring, when the leaves turn green, the economy will grow. You can take that to the bank, that is, if it`s still open.  
Backwoods Jack
On December 6th I emailed Backwoods a chart from Jeff Clark that correlates a decade of Dow and gold performance.  I emphasized that it is not important where the Dow goes; the ratio between the Dow and gold is what he should focus on.  Backwoods must have been too busy shooting squirrels, in the backyard of his $2 million estate on the shores of Lake Superior, to find the time to read my email.  I must be making some headway with him however, because at least he does (somewhat sarcastically) mention the possibility of bank closures.

While the Dow Jones Industrial Average is up 4.7% in dollar terms, it’s lost 82.5% when measured in gold grams. An investment of $10,000 on January 1, 2000 would total just $10,470 today (excluding dividends) – but in gold it’s worth only $1,750.
Viewed in a different fashion:

“IF” Backwoods is correct, and the Dow does hit 13,500, then at the current relationship between the two (7 to 1), gold will be selling for at least $1,930.  I think gold will be selling for more than $2,000 by next spring, regardless of where the Dow ends up.  Yes, it could be 13,500 but it could also be $10,000 or less.  Of the two, I put MY money on gold.  Got that Jack!

A note from our friend Trader David R:
Remember David,
Central Banks only sell on the lows and buy on the highs….. they all sold sub-$700 and now are buying above $1,700….  the volume has been very light, which is making trading more volatile…. I expect this to continue until we get a clearer picture of the election outcome !
David R.
Finally, here is a picture taken on Thanksgiving in Miami with my long-time friend Ausbert de Arce’, his wife Petra, his sister Betsy (in the dark hair to my left) and my wife Susan.  (The little white Maltese, on Ausbert’s lap tried to bite both Susan and me.  The reason we look so introspective is because we were thinking of ways to kill the beast.)  We are adapting very well to the Miami lifestyle.