- Ancient wisdom says, "your friend is your enemy and your enemy is
your friend". In the gold & silver market, this ancient
wisdom may be particularly valuable for investors today.
- Gold plays the role of punisher
in this crisis, and punishes the debt-a-holics.
The crisis is enormous, and could go on for decades, but just because
the crisis may have decades to run doesn't mean that gold rises
forcefully, all the time.
- The economy can have enormous
bouts of strength while slowing disintegrating, and you have all seen
the shockingly bullish economic reports pouring out, in recent months.
Analysts continue to under-estimate the economic numbers.
- Something has got to give here;
either the analysts are correct and economic numbers are about to
nose-dive, or the economy is surfing a much bigger up wave than the
- Click here
now to view the current gold chart. Note the small head and
shoulders top pattern in play, and the broken uptrend line. I personally
couldn't care less about the microscopic fall in price implied by this
technical action. I'm only interesting in buying price sales of $100 or
- My interest lies with the
divergence between gold and silver, and why that divergence may be
occurring. Silver investors should click
here now. I've talked about the importance of silver investors
holding your ground against "big sister gold". Life as the
little brother can be frustrating at times, but this could well be your
time to shine, but not because silver is "poor man's gold".
- Last night the price of silver
ripped thru its right shoulder high, and the price action is beginning
to resemble the action of the Dow, even more so than that of gold. Click
now to view the Dow "chomping at the 13,000 point bit".
Silver's price action in the $36 area is very similar to the price
action of the Dow in the 13,000 point area.
- If we are on the cusp of an
institutional capitulation, one that acknowledges that a much bigger
recovery has started, then silver, platinum, and palladium could all
- If not, then silver is likely to
resume its role as "gold's sidecar", and still fare pretty
well. Platinum and palladium may not fare as well as silver if the
crisis accelerates dramatically.
- Gold appears to be silver's best
friend, but if a shocking economic revival is just around the corner,
perhaps it is the supposed enemies of silver, the Dow and real estate,
who will become silver's friends, at least for a period of economic
- How big of an economic surge am
I talking about? To view the shocking super-rally in real estate that I
am predicting, click here
- That's the IYR-nyse real estate ETF from ishares,
and I'm predicting a near-immediate rise in price to my $100 price
target, a scenario that will cause 99% of the gold community to do the
ultimate "double take".
- There's an enormous head &
shoulders pattern on the monthly chart, and the daily chart also looks
extremely positive. Click here
now. Note the position of the Stochastics
oscillator, and the solid support in the $58 price range.
- Both real estate and the Dow may
add surprising fuel to the silver rally, but that doesn't mean you
should buy today. Bullish price patterns reveal where price might go on
the upside, but they are not buy signals.
- It's critical to understand that
surprise is the theme of this crisis. It's equally critical to
understand that the markets are a fight more than an investment. You
don't really have "fellow investors". You have opponents
that you need to ravage and destroy. You can face that fact, or be
destroyed by those who live the markets in fight-mode.
- You can't buy silver after it
has skyrocketed, because you will be buying it from strong hands, and
doing so alongside weak hands. If you don't feel morbid when you buy,
- What's better, to feel morbid
when you buy, or morbid when you sell out at a loss? Buy in the morbid
zone and sell in your personal party and analysis zone. Those who want
to feel good both on the buy and on the sell are likely living a
- If we are entering a period of
shocking economic growth, albeit growth printed out of an electronic
photocopier machine, then perhaps silver and other industrial-precious
hybrid metals will substantially outperform gold for a period of time.
- If real estate joins the Dow in
ravaging the dollar, then gold stocks could also join silver in
outperforming gold. I'm fully aware that most of the gold community is
highly invested in gold stocks, with many in the community owning no
gold bullion at all.
- While the policy of holding no
gold bullion is a bad mistake, that doesn't change the fact that it
could be your time to shine, if you are all-in on gold stocks. Real
estate and the Dow, the gold stock community's "enemies", may
soon become your trusted friend, for at least a period of time.
- Click here
now to view the GDX chart. I'm an immediate buyer at the $55.50 and
$53.50 price points. Note the action around the $58 price point. GDX is
attempting to blast over the red trend line. If the Dow surges through
13,000 and the IYR rips up through $61.68, I think GDX could experience
a "price flash" to $70.
- The incredible 35% rally in gold
junior stocks, via GDXJ, has been all but forgotten, and with good
reason. Most gold junior investors are 50-70% underwater, and more so in
some cases. Just because the Dow investors of 1929 were wiped out didn't
mean the Dow couldn't rise from the ashes, and it is the same with
junior gold stocks.
- Click here
now to view the asset class most likely to continue the out-performance
that it began two months ago. GDXJ has entered an uptrend channel and is
showing light volume on this decline.
- You should be an immediate buyer
of GDXJ at $27.16, if you are lucky enough to see price go there. If you
like gold junior stocks, stare hard into the copper, real estate,
platinum, and palladium charts. Those asset classes look set to blast
higher and may drastically outperform gold!
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