This question is important because, in order to adopt the correct investment strategies we need to try to anticipate if Stock Markets will:

1. Crash and Burn – A Crash is a Crash – you have lost money;
2. Trade Sideways – read negative “Real” returns – easier to know you have lost money as you know that if the DOW & S&P are at the same level in 2011 as they were in 2000 you have obviously lost after adjusting for inflation, whatever that may be;
3. Go up in “Nominal” terms but not in “Real” terms – harder to evaluate if you have or have not lost money, since the markets have gone up dramatically and yet, their rise may not have exceeded the real adjusted www.shadowstats.com inflation rate.  This is what happened in Zimbabwe, where share prices rose to Trillions of Zim Dollars in a few years, but declined when measured in Dollar, Euros, Gold etc; or
4. Go up in “Real” terms – can only happen if Fiat currency party comes to an end and the Global Economy is Healthy.

From Unsustainable To Sustainable – Jun 14 2011

This is why Gold is going up. Invest in Gold and Krugerrands as these will protect your wealth while the world enters a painful transition phase.

THE ROAD FROM WHERE WE ARE NOW TO OUR FINAL DESTINATION

We are at a point where the current social and economic system is unstable, unsustainable and nothing adds up anymore. We need to get back to basics, where these systems revert to a more sustainable, viable and ethical historical norm. This will take at least a decade. I am going to map out point by point my take on the road from the “unsustainable” now back to a more viable “Reality”:

1. Governments, States and Counties no longer balance their budgets with expenditure exceeding revenue by far, with all shortfall funded by excessive debt, thereby deferring the cost of their profligacy to future generations. We will only be back to Reality when government officials are, once again, held accountable for delivering balance budgets i.e. tax revenue = expenditure. The painful transition will include higher taxes, expenditure cutbacks, retrenchments, demotions, salary cuts, etc;
2. Almost all Western governments have incurred excessive debt and they are unable to service this debt, particularly if interest rates rise. We will only be back to Reality when these debts and their debt service costs have reverted to manageable levels in relation to the countries’ economies and can be serviced by the tax revenue stream. The painful transition will include higher taxes and substantial defaults coupled with re-negotiated terms with lenders i.e. reduced loan amounts, extended loan terms and reduced interest rates. Bankruptcies will become a norm;
3. Almost all Western governments have raided the coffers and instead committed to deferred entitlement programs i.r.o. Social Security, Health Care etc for which no provision was made in current budgets, i.e. they have transferred the cost to future generations. We will only be back to reality when these entitlements have been cut back, money for the reduced entitlements has been set aside and the expenditure provisions are reflected as provision reserves in government balance sheets. The painful transition will mean that most people who had no “own” pension provisions will be left impoverished by bankrupt entitlement funds and they will get marginal support from current taxpayers by way of higher taxes. Suicides will become common;
4. All currencies are Fiat and this situation is being exacerbated by rampant printing, which benefits only the politicians, the bankers and the rich, while it undermines the currency, savings and economic growth and destabilises global politics and trade. Fiat currency systems make the general public poorer. We will only be back to Reality when currencies are back on the Gold Standard or some sort of global managed benchmark/scheme that ensures fiscal responsibility i.r.o. balanced fiscal, state, municipal, trade and current account deficits. The painful transition back to Reality will require the immediate resumption to fiscal discipline (discussed above) and will bring to a halt the shenanigans of many government politicians, bankers and executives. In the fallout, it is likely there will be many prosecutions of politicians, bankers and corporate executives for fraud, corruption, manipulation and countless other dishonest practices;
5. For the past 25 years, average PE Ratios have been unusually high at 15-17 times and Dividend Yields have been unusually low at 1.5%-2.5%, partly due to low rates (manipulated), low inflation (manipulated) and easy money. This was mainly because money was easy to come by and less and less money was made from value added activities, while more and more profits were made from commissions and speculation. When we return to reality, company earnings will once again reflect real value with average PE Ratios at 5-8 times and Dividend Yields at 5%-10%. The painful transition back to reality will be felt mainly as lower returns in the banking and investment arenas and most people will have lost a very considerable portion of their wealth as stock markets adjust downwards;
6. The past decade has been characterised by negative real returns in equity and bond markets. When we return to reality, investors will once again demand a fair return for their money. The painful transition is discussed under other points;
7. During the past 25 years, easy money made executive and management remuneration packages grow at the expense of workers’ wages and this was exacerbated when most companies introduced huge incentives. The result was that most packages were disproportionately large in relation to the value the management employees added to their companies and were skewed in favour of the employees at the expense of the shareholders. We will know that we are back to reality when an employee is paid to do a job and the annual bonus is the equivalent of 0-2 months pay at the discretion of management. The painful road back to Reality will entail huge pay cuts for the majority of people in senior management positions. This will also result in dramatic reductions in consumption particularly in upmarket products and services;
8. The past 25 years were characterised by manipulated Statistics with inflation understated, growth overstated and unemployment understated. These tactics were aimed at misleading the public, causing “the people” to think they were being treated fairly when in fact they were being systematically impoverished. In effect, workers wage increases were not keeping up with cost of living increases (inflation) and, over many years, the cumulative effect made them ever poorer. The result was that the workers earned progressively less as they were initially compelled to work a day and a night job and finally sent the wife to work to make ends meet, while management lived a life of luxury. We will know that things are back to normal/Reality when inflation, GDP growth and unemployment statistics once again fairly reflect cost of living adjustments, economic growth and unemployment. The pain of the transition will be felt mainly by politicians who will have less room to manipulate matters to their own advantage, particularly when this is used to secure re-election. However, it will also be felt as reduced earnings at management level, which will hopefully be offset by greater recognition for workers with higher rewards for fair labour (the latter will take a few decades as unemployment will initially be too high);
9. For the past decades, greed, exploitation and selfishness have become the norm. Once the abovementioned Reality/Norm sets in, people will have experienced and shared such hardship that they will have gained a new perspective of and respect for their fellow man. The pain of transition will have been felt by all, either by way of loss of wealth, unemployment, a reduced standard of living, serious hunger or legal prosecution.

You may ask who is going to bring about this change.

The pressure will come from three primary sources:

• Developing countries who have had enough of being disadvantaged by the Fiat system and policies of Developed countries, particularly i.r.o. depreciating trade surpluses;
• The market makers like Investment funds, Private Investors, Bonds and Equity traders who will demand a fair return for the risks they are taking after they progressively realise they have lived with negative Real returns. Eg. Pimco has exited the US Bond market and is shorting same;
• The voting public who will have had enough of being exploited by their elected officers, bankers and employers.

Characteristics of the decade period leading up to and following the point at which a sustainable norm is re-established will include the following:

• Higher taxes in Developed countries like USA, UK, EU;
• Balanced budgets at municipal, county, state and national level;
• Seriously lower share prices – when measured in real “purchasing power parity” terms, which means most people will have less wealth and many will have been wiped out. However this will be accompanied by shares offering Real Value, with lower PE ratios and higher Dividend Yields;
• A marked decline in the number of rich people and opulent lifestyles;
• Seriously high unemployment coupled with serious hardship, including greater homelessness, less food etc, with Government protests spreading to most countries including the USA, UK and EU. All this is likely to be initially accompanied by an increase in lawlessness and crime;
• A generation of pensioners who will not be able to afford full retirement and who will experience severe hardship in their later years;
• Government will account for a lesser part of GDP and will employ less people;
• A wave of prosecutions of the architects of the demise of ethical business practices;
• An increase in selflessness and integrity, fairness and consideration

Does US Want Markets To Crash? – May 31 2011

This is why Gold is going up. Buying Gold and Krugerrands for investment is prudent as negative real investment returns drive Gold higher.

US wants market crash

We all know that QE2 expires at the end of June. As mentioned previously, in the absence of FED buying, the US needs bond sales to fund its deficits. The question is who’s going to buy if Pimco, China, Pension and Investment funds are no longer buying and the FED stops taking up the slack by buying 75%-80% of Treasuries when it runs out of QE2 money.

Maybe the US and, particularly the FED, want the US Markets to crash as this will result in a flight to the safety of Bonds, the Dollar, Gold maybe Silver. If the US markets commence correcting end June, it is highly likely that such a correction would last into late July/Early August (If it lasts longer it starts to look more like a full blown crash, which no one wants).

This means that the problem of funding deficits for the first few months post QE2 is resolved as Pension and Investment funds move out of equities back into the relative safety of Treasuries and probably ?Gold? Thereafter, the US deficit problem again rears its ugly head, which can be resolved in one of two ways. Either the US adopts a Prescriptive Assets strategy where it compels pension and investment funds to increase the percentage allocated to Bonds, or it adopts QE3.

However, the US wants positive economic growth and low interest rates leading into the November 2012 elections and growth will not be provided by prescriptive Bond purchases.

Therefore, it is more likely that the US will use the fear generated by the equity market crash and the prospect of a consequent economic slowdown to justify the resumption of QE3. Now it is widely acknowledged that QE2 fuelled the recent speculative boom in Commodities, Equities, Gold and Silver.

Furthermore, QE2 suppressed interest rates, which resulted in negative “Real” returns and negative “Real” returns coupled with excess “Fiat” money creation are the two absolutely fundamental drivers of every Gold boom. Therefore, the odds favour a resumption of QE’s and that, in turn, favours a resumption of the Equity Boom, sustained low interest rates and the perpetuation of the Gold/Silver boom. Remember, these are probable, not guaranteed scenarios and the timing is even more difficult to predict.

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Copyright:- Eelco Lodewijks

Dollar Down Gold And Silver Up – May 24 2011

This is why Gold is going up. Invest in Gold, Silver, Soft Commodities and other currency hedges as Dollar Down = Resources & Commodities UP

First a look at my favourite chart

Here we see the Elliott Wave count as I see it (probably correct) which is Wave 1 of Generational Bull Market Wave 3. The wave v of wave (5) of extended wave 5 seems to be unfolding as expected. This should take the price up to $1600/$1650 as I expected. This would then set us up for a 38.2% correction down to $1250. However, we must be aware that this extended wave 5 could have a 9 count wave which could take Gold considerably higher to say $1950 or $2250. This would be seasonally counter intuitive, but it is still possible. It would also be counter intuitive in that it would take the final Elliott Wave Count from the current indicative $8 000 level up to $10 000 or $12 000 respectively. However, anything is possible. While Gold looks overbought and ready to correct, Gold Shares look quite bullish. See the following Charts.

Looking at the Monthly Rand Gold Price above, we see that Rand Gold has clearly broken out of a multi years pennant/wedge.

Looking at the Weekly Rand Gold Price above, we see that the price broke out to the upside, reverted to test the previous resistance turned support and headed North. This gives us a Rand Gold target of R14 000 – R15 000.

Now this article – I have reversed the two parts of the following article for clarity purposes. See http://hgmandassociates.com/category/gold-mining-hui-jse-gold/ for this excellent full article –
my comments in Red.


Rand Gold Price vs JSE Gold Index by Hubert Moolman

April 10, 2011 by Gold South Africa
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In the chart below, he looks at the fractals of the JSE AllGold Index – using Fractals (namely patterns that repeat). You will notice the similarities between the first smaller fractal on the left and the larger one on the right. The first breakout is in 2002 and now after a multi-year textbook copy of the first fractal, it looks as if we are on the brink of another breakout.

JSE GOLD MINERS INDEX

March 17, 2011 Gold South Africa
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JSE Gold miners are almost in the mania zone. Soon prices will rise faster than almost anything else. See my fractal analysis below:

In the next chart, he compares the Rand Gold price with the JSE Gold Index and the fractal could imply that the Index is about to rocket from 2 500 odd to 10 000 odd.

Below is a chart that compares the Rand gold price to the JSE miners (JSE Gold Index):

The blue(ish) – thicker line – chart is the Rand gold price and the black one is the JSE Gold Index. I have indicated similar “fractal” positions, which indicate that we are at a point in time where both charts should rise significantly. The other important point to note is the fact that the JSE Gold Index should catch-up with the Rand gold price over the next 18 months or so, just like it did from late 2001 to middle 2002.

Warm regards
Hubert Moolman

http://hgmandassociates.com

Filed under Commodities, Fractal Analysis, Gold Mining (HUI & JSE Gold), Gold Update, Tagged with Fractal Analysis, Gold, Gold Price, HGM & Associates, Hubert Moolman, JSE Gold Index, Rand Gold Price

Next we look at the HUI and XAU

HUI’s MACD looks as if it is bottoming and the Stochastic (PKS) has crossed to the upside, so we are probably going to see a rally and any rally over 620 will probably go considerably higher – ????900 by the end of the year????

XAU’s MACD and Stochastic (PKS) – same story.

Here we have the Free Stockcharts chart for the Weekly Hui/Gold ratio going back 2 years and we see that the Hui has been distinctly weak against the $Gold price. Could it be that it is turning up now.

Conclusion. I still see a bit more upside for Gold. However, all the charts are indicating that there could be considerable upside for Gold Equities. Since Gold Shares often lead Gold, and only move if there is the prospect of considerable upside for Gold, I wonder if we are going to see more upside for Gold than I expect. Based on the Gold Share indices I am inclined to think we will see a fair run up. So let us look to the Dollar for Guidance – below

The Dollar Index Daily – possible Bearish Engulfing candle – not confirmed – turning at previous support turned resistance (Dashed red line) – a move down would cause the oscillators to roll down. If Daily drops a tad more by Thursday’s close, the Weekly will close below support turning resistance in the 75.75 vicinity. Monthly oscillators still biased to the downside. As mentioned before, I expected the DI to go down to 70/71, rise to retest support turned resistance in the mid to high 70’s before finally heading for the 30/40 zone. While I was starting to doubt my scenario, it now seems we could get there. However, there is not sufficient evidence to confirm Dollar weakness as the driver for Gold strength, but, at times like this we could see a temporary disconnect where both Gold and the Dollar rise as there is a flight to the safety of Cash and Gold on the prospect of Equity weakness.

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Copyright:- Eelco Lodewijks

Looking 10 Years Ahead – May 22 2011

This is why Gold is going up. Invest in Gold and Krugerrands to protect your wealth as global unrest, unemployment, food riots and crime become endemic.

OVERVIEW OF THE DECADE AHEAD?? (dd End April 2011)

I am going to start at the end. After years of reading, analysis and reflection, I am finally convinced by the sheer number of excellent articles on the web, coupled with recent comments of “top” politicians, that the US empire and an era of “Western” greed and corruption are about to come to an ugly end. I think that the dominance of the USA and the US Dollar is over, that the “developed” world is on the brink of an unprecedented economic collapse and that there will be dramatic global political upheaval for the next decade. It is almost certain that things are going to get really really bad, as it is likely that paper money will become nearly worthless, that poverty will become endemic and that security and access to basic supplies like food could become critical issues. Therefore this is a time to protect your capital with tangibles like Gold, Silver and Property and to educate yourself about “just how bad it could get”.

In my opinion Gold and Silver will exceed their inflation adjusted 1980 peak because the recent US Dollar breakdown points to it halving in value and the global economy is in a far worse state than it was in the 70’s. So what would the “Real” equivalent price for Gold and Silver be? Using the less manipulated inflation formula of the 1970’s as opposed to the current “official” USA rates:- says John Williams of www.Shadowstats.com: To truly equal that price in today’s inflated money, gold would have to be “$8,331 per troy ounce” and silver would have to be priced at “$485 per troy ounce”.

However, due to the recent explosion in Fiat currencies, which is not reflected in manipulated official statistics, coupled with the excesses and imbalances facilitated by “reporting misrepresentations”, currencies could become worthless. In Zimbabwe they had hyperinflation (Weimar Germany Style) and bread went for Trillions of Zim Dollars, so in the current Fiat circus all bets on the ultimate price of Gold are off:- Jim Sinclair: What’s the exchange rate of a currency with no liability attached to it? Gold is going much higher. We could see shocking gold prices, maybe Alf Fields’ target of $10,000 per ounce or Martin Armstrong’s target of $12,000 per ounce.….. Note! I do not think the BRIC countries will allow the situation to get anywhere near as bad as Zimbabwe, where inflation was in the millions of percent, but inflation of 15+% is almost certain.

The Developed world is in an unstable state and there is little or no chance that the “Powers that be” can pull it out of the death spiral that is baked in the cake. Asked about inflation:- Jim Sinclair: The deed is done. Inflation is a pregnancy. The conception has already taken place. There’s a delayed effect but if you do the crime, you do the time. The Federal Reserve could stop QE tomorrow and it wouldn’t stop what’s going to happen because of what they’ve already done. In my opinion, there is no doubt that higher inflation and higher interest rates are on the way.

We already have inflation – www.shadowstats.com reports the true figure is closer to 10% and negative economic growth which they allege is closer to -3%. This means we already have stagflation, which is worse than inflation. During periods of high inflation, the majority of people still have jobs but they become progressively poorer as their increases do not keep pace with cost of living increases. During periods of stagflation, many people lose their jobs and have no income while prices escalate.

US National, State and Municipal deficits are as bad as or worse than those of the UK, the EU and its black sheep countries like Greece, Portugal and Ireland, a fact that has been carefully suppressed by the US and its media machine, who divert attention to the European Debt crisis, Osama, Lybia etc. Currently more than half of the US States are bankrupt, including the larger more populous ones like California, New York and Florida, all of which have bigger economies than Greece. Currently US payments to social support and entitlement programs “reputedly” exceed tax revenue from its citizens as more than 45 million people are on food stamps and more than 50% of US citizens receive some form of support. In my opinion, the US will eventually default on its debt as it will be unable to cut its expenditure and/or raise its taxes sufficiently to cut its annual deficits without causing a collapse. Accordingly, in an attempt to stave off bankruptcy the US will have no choice but to try to inflate its way out of its debt by resuming its QE Monetization activities, which will cause confidence in the Dollar to collapse and will ultimately not succeed.

The resumption of Monetization and the subsequent collapse of the Dollar, which will fall to at least half its current level will cause the prices of Dollar traded products like Precious Metals, Resources and Commodities to soar. This will, in turn, cause global inflationary pressures to rise which will, in time, cause global inflation to spiral out of control. This will, in turn, precipitate a situation where countries will eventually have to raise rates in an attempt to bring the global economic crisis under control.

The combined effect of higher inflation, higher interest rates and a collapse in the Dollar will cause the bond market to collapse. Since the bond market is about treble the size of the equity markets, this in itself will cause stock markets to crash.

Now comes the really bad stuff. It is a fact that the public at large have become progressively poorer over the past decade as wage adjustments based on manipulated Core Inflation statistics have not kept track with cost of living increases. This is because the US Core Inflation statistic, which is “officially” 2+%, includes low inflation items that are down-rated by way of Hedonic Adjustments, while it excludes all the items currently experiencing high inflation like Food, Fuel, Heating Energy etc. Now we all know that prices of Food, Fuel, Heating Energy, Medicines etc have been rising at an average rate of between 10% and 20% over the past decade and that these costs account for the majority of the living costs of most people. Fortunately www.Shadowstats.com, which keeps track of inflation using the less manipulated formula of the 1970’s, confirms that average US inflation over the past decade has been closer to 10+%. Therefore, we know that the public at large has become poorer at a rate of say 8% per annum (10%-2%) and that the cumulative effect over the past decade means they are 50% worse off than they should be. This is the reason why food strikes have commenced worldwide and are expected to spread to the developed world.

Now we are entering an era where the highly likely prospect of equity and bond market collapses, coupled with fiscal and systemic banking collapses are likely to cause massive commercial bankruptcies, loss of wealth, layoffs etc. This, coupled with the fact that most people are already struggling to make ends meet, is likely to usher in a decade where extreme poverty and hardship become the norm for the majority of people in the world. Regrettably, when people are faced with a situation where they are unable to feed & clothe their families and/or homeless, many will be driven to crime to provide for their wives and children. Therefore, we are likely to see a dramatic escalation of petty crime, muggings and even syndicated criminal activity. There is also a possibility that basic supply chains will be disrupted and that people will not be able to afford to move around to find alternative sources of basic supplies.

I put the probability of major global economic disruptions at 95% and the probability of this scenario playing out at over 80%. I estimate that the situation will tip before the end of 2011 and that the really desperate times will commence by 2014. The reason for this early tipping date is that the US will be either compelled to resume QE Monetization activities or they will be compelled to take drastic fiscal austerity actions and either of these will cause their equity and bond markets to collapse.

In Summary, I think the current period of Stagflation will extend for another 4-5 years. I think we will almost certainly see massive defaults and financial hardship on all fronts, therefore, it is a time to be really careful to protect your wealth. I think access to basic essentials and security could become very real problems.

Now I know I said it is a time to protect yourself with Tangibles like property. However, I am holding onto my Gold and Silver and not buying more property until I see where and how the cards fall in this era of uncertainty. This is because I feel that the security of property rights could change or be at risk in many countries during this time or political chaos.

I will sell my Gold and Silver when they are near their peak and when I see that sanity has returned to the Developed world leadership and its fiscal policies. Only when the markets once again offer fair value in terms of PE Ratios and Dividend yields and I am confident that the my property rights are protected, will I once again re-enter the traditional investment arenas. I will then invest in:

• Property (30%) as prices will be at a 50 year bottom and property is always a good investment long term as long as your property rights are secure;
• Bonds (20%) as inflation and interest rates will have peaked and I must be conservative at my age;
• Chindia Equity Funds (20%) as equities markets in Chindia will have matured, will probably do well and a strengthening currency will yield a double bonus; and
• the balance spread accross future technologies like IT (which still has a way to go), Biotech/Biogenetic engineering, Batteries, Alternative Energy, Health Food, Nano Technology etc.
• I have not allowed for Resources and Commodities at this stage, although they may still have some legs.

I believe Chindia, Canada and, to a lesser extent, Australia will have the stronger currencies in the years ahead. I believe that the East, including China, India and Japan will recover quickly and will be good places to invest for the next 2 decades as their markets have considerable scope to grow before Chindia are mature and their currencies will strengthen.

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Copyright:- Eelco Lodewijks

Dollar Index Breaking Down – April 28 2011

This is why Gold is going up. Buying Gold and Krugerrands for investment is prudent as the very real prospect of a Dollar Collapse becomes real.

THE RECENT DOLLAR INDEX BREAKDOWN – THIS IS A BIG DEAL

The Dollar Index has broken down through support on the Daily & Weekly charts and down out of a 3 year bearish wedge on the Monthly chart (below right). Now it is important to note that in Bear Markets such breaks out of triangles are 80+% reliable indicators of further downside. All the Oscillators, including MACD and Stochastic (PKS) are pointing to further downside.

Now it is normal with such breaks for price to break down long enough that the break is confirmed, where-after it will recover to retest the previous support lines that have now become resistance lines, before really breaking down to new lows. In the case of this chart, the break down could be to the previous low at say 70/71, which would be reached by say end May/mid June. There-after we could see a recovery lasting a few months that will take the Dollar Index back up to the mid 70’s, where-after it will break down with a vengeance. Looking at the longer term chart further down, the longer term target is somewhere between the lower 30’s and the lower 40’s.

Now for a look at this longer term chart taken from an article on Gold Eagle by Jim Willie dd 20110311

Typically in bear markets when these triangles break to the downside, the move to the downside is similar in magnitude to the move leading into the triangle (block arrows), which gives a target of 40+ with about an 80% certainty. I have also tried to match the projected slope (my red line) with the previous drops, which implies that this run could last 2+ years, less the bit that is already baked in the cake and we get to mid to late 2012.

Note – on the chart duplicated below! There is a 2 decade long complex H&S forming with the head at 120 and the neckline at the green lines at 75 odd that will yield a target of 30 when the Dollar Index breaks down below say 70 (block arrows) with an 80% certainty.

Now if the Dollar Index drops from 75 to say 45, this means that all products that are traded internationally in Dollars like Gold, Silver, resources and commodities should increase in price by 75/45 = 70%. This would take Gold from $1400 to $2330. If the Dollar Index drops to 40, that raises the Gold target to over $2600 and if it drops to 30 Gold would trade at $3500. However, remember, this could take a few years into end 2012 or even 2014.

Looking at overall timing. The Fed is about to cease QE2 end June. Therefore, the odds are that the Dollar Index will continue down into late May early June. Now it is worth remembering that QE2 is largely responsible for the recent rise in the equity markets and the rise in precious metals, resources, commodities, food, fuel and energy prices. Therefore, following the cessation of QE2, the equity markets, precious metals, resources, commodities, food, fuel and energy prices are likely to tumble. In fact, it is likely that the market will anticipate the effect of the ending of QE2 and that these markets will tumble end May/early June. Immediately the markets tumble, banks are likely to be in trouble again and the US and the Fed are likely to caucus and conclude that further stimulus is needed, failing which the US will crash and burn / be bankrupt. It will probably take a few months, but eventually the US will have to resume QE activities. This will once again send all these markets North. Therefore, I expect the correction in the markets to commence relatively soon but latest by mid June and then I expect the correction to end by mid/late August, where-after the markets will resume their journey north. Remember, the simple fact that they are discussing further QE will be enough to start the markets, even before the bill is ratified. I expect Gold to get to $1550/$1600 and then to correct to $1250 before rising again. I expect Silver to correct to say $37. I expect the Equity Markets to correct at least 10%, but probably 16+%.

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Copyright:- Eelco Lodewijks