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XMFSinchiruna (27.97)

Tomorrow's Parabolic Surge in Gold

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August 19, 2010 – Comments (12) | RELATED TICKERS: TCK , AUY , NXG

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"

.....

Thank you as always for your readership, and for sharing your thoughts and reactions either here or at the article itself. If you appreciate the content, please remember to rec the article at the source. Many thanks!

Sinch

12 Comments – Post Your Own

#1) On August 19, 2010 at 1:17 PM, binve (< 20) wrote:

Hey Sinch!

I put a post up on my other blog a few weeks ago that speaks directly to the timing aspect. You may be interested in it. So far the projection is playing out. The next month (seasonally which is gold's strongest) should play right into it. My hat is old. My teeth are gold. And now my story is all told.

Thanks!

 

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#2) On August 19, 2010 at 1:18 PM, XMFSinchiruna (27.97) wrote:

binve

Thanks for bringing it to my attention. I get so busy sometimes that I miss out on some excellent posts. I'm looking forward to reading your later. :)

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#3) On August 19, 2010 at 1:28 PM, dbjella (< 20) wrote:

 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."

Question:  How can Japan and the UK buy treasuries when they have debt problems themselves?

Is it me or am I the only one questioning if there is enough private money to cover the worlds public debt?  ...maybe it doesn't matter with Fiat money..

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#4) On August 19, 2010 at 2:02 PM, JakilaTheHun (99.94) wrote:

http://www.amazon.com/Are-Missing-Real-Estate-Boom/dp/0385514344

 

People never learn. 

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#5) On August 19, 2010 at 2:21 PM, rfaramir (29.57) wrote:

There isn't any backing to the world's fiat currencies (kind of their definition), so they have no inherent value.  They have only perceived value, mostly inertia left over from when they were actually convertible to specie and comfortingly firm words from the countries' leaders about "full faith and credit" and promising to tax their citizens to death to pay back their bonds.

The reality?  http://www.youtube.com/watch?v=5D0VhS8qXT0

"How can broke economies lend money to other broke economies, who haven't got any money because they can't pay back the money the broke economy lent to the other broke economy, and shouldn't have lent it to them in the first place because the broke economy can't pay it back?"

"How can they pay each other if neither of them has any money?"  "They're going to get a bailout, aren't they?"  "Correct.  And where's the money coming from for the bailout?" 

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#6) On August 19, 2010 at 3:19 PM, ChrisGraley (30.25) wrote:

Shhhhhhhhh!

;)

+1 rec

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#7) On August 19, 2010 at 3:35 PM, Valyooo (99.63) wrote:

I bought GOLD today at 91.55/share, set a limit to sell at 99 GTC. Im banking on hitting it by the end of september

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#8) On August 20, 2010 at 12:40 PM, fewl10 (< 20) wrote:

The only thing going parabolic is the number of your stupid posts about gold.

Come on man, how many articles have you posted about the ramp job in PMs that's "just around the corner"?

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#9) On August 20, 2010 at 12:42 PM, fewl10 (< 20) wrote:

Hey FOOL:

"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"

This is the foundation of your parabolic gold move right?  Ever consider what that would do to stocks?  Idiot.

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#10) On August 20, 2010 at 12:53 PM, outoffocus (23.59) wrote:

Hey Sinchi,

Haters are often a sign that you are doing the right thing. I mean if someone is going to hate on one of the most respected writers on this site, they could at least have a CAPS rating greater than 20.  I'm just sayin...

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#11) On August 20, 2010 at 1:54 PM, 100ozRound (29.70) wrote:

Getting my popcorn...

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#12) On August 20, 2010 at 4:42 PM, XMFSinchiruna (27.97) wrote:

fewl10

I only debate with adults.

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