Tomorrow's Parabolic Surge in Gold
August 19, 2010
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Gold is preparing to go parabolic. The precise timing is anyone's guess, but the next major upward leg in gold's multi-year secular bull market is poised and ready to run.
http://www.fool.com/investing/general/2010/08/19/tomorrows-parabolic-surge-in-gold.aspx
We may well see one last push downward towards the $1,100 mark before launch time, but if a triggering event occurs before that time, the metal is ready to launch without it as well. I believe $1,500-$1,650 is the target range for this next phase, at which time I would anticipate a fairly major consolidation phase before we proceed to $2,000. $1,500 could conceivably come this calendar year, and even Sinclair's $1,650 target is not out of the question if conditions in the Treasury market or even in the leveraged paper gold market were to deteriorate abruptly.
Excerpts:
"For those with the correct mind-set for gold, tomorrow could come next week, next month, or even next year ... it makes little difference if you're already in position. Gold has already soared through previous monster-moves in price, but I believe the metal iIf the U.S. is lapsing back into some serious economic difficulty, there will be a sudden realization that the financial situation is hopeless. As a result they're going to have to create so much money or take such a brutal deflationary depression that people will change their philosophy and not invest in U.S. bonds at 2.85% for 10 years. It won't take much money coming in the direction of gold and silver to have a significant impact.s now preparing to go parabolic."
"At the same time that China is ramping up its exposure to gold, the country continues to reduce its exposure to U.S. debt. Recent data reveal that China's holdings of U.S. Treasuries in June fell to $843.7 billion, marking nearly an 8% reduction from $915.8 billion one year earlier. In fact, China shed more than $56 billion in Treasuries on a net basis in just two months' time (April to June). It is my contention that without concerted buying activity by Japan and the U.K. over recent months, China's ongoing exodus from U.S. dollar exposure could have touched off a fresh crisis of confidence in the greenback."
Embry: "If the U.S. is lapsing back into some serious economic difficulty, there will be a sudden realization that the financial situation is hopeless. As a result they're going to have to create so much money or take such a brutal deflationary depression that people will change their philosophy and not invest in U.S. bonds at 2.85% for 10 years. It won't take much money coming in the direction of gold and silver to have a significant impact."
Embry: "If it's not between $1,500 and $2,000 in the next 18 months, I'm dead wrong"
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Sinch
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