Gold's time in the barrel is over!

[rickortreat]

Finally, it's time, as the overprinting by the US has gotten our trading partners very upset.  There was some buying of the Dollar over the last week when the Chinese were here, as a smokescreen, but it cannot last. China has lots of Dollars and wants the value out of them before the decline occurs.  They can't do anything, since as soon as they start buying the dollar starts going down.  What they buy will end up going up in US dollar terms, mostly things they need like commodities and possibly food.  The Chinese are suspicious of their govt. and trust gold.

This should be the last opportunity to buy Gold below $1,000.  This time it continues upwards for quite some time, just watch the dollar index.

GG continues to be my favorite for options as it tracks with gold, and when it gets pounded, puts are very profitable.  If you have calls, don't panic, just wait since there's time before expiration to get profitable again if you screwed up.

[rickortreat]

Here we are a few weeks from the original post, and Gold is now at $974. The Chinese decided that they can default on derivative trades from US banks, something the US govt should have done, instead of coddling those crooks.

Anyway this is the end for the dollar, since China is not going to wait for their stockpile of Dollars to collapse in value first. Instead, they will be buying commodities and that will put the price up for everyone. Oil is a focus, as is copper, steel, food supplies and gold.

Time is running out for the US. China, India and Brazil are all eager to jettison the dollar in favor of a more stable form of value, and it's going to be more than just talk.

[rickortreat]

Only 30 trading days since my last post on this. Gold is now at the 1060's level, a new record high.  This is not a plateau either. It is a break-out as can been seen on any chart.

Fibbonacci price target for the current move is about 1121.63 for an interim high.

The Dollar is in free-fall once again, as a response to declining economic activity in the US. Stocks are doing well in the declining dollar environment. Large international companies based in the US are realizing a competitive advantage at this point, but Europe is already complaining.

China, and to a lesser extent India and Brazil are sucking the economic vitality out of the US, Europe and Japan. Expect continued currency devaluation out of the later, and more pressure on China to remove currency controls. Quite remarkable that no one in the EU or US is screaming at this point, indicates that we are far from any serious effort at rebalancing of the world ecomony. 

The Canadian Dollar and Australian dollar should remain fairly strong as both produce a lot of raw materials.

Inflation is becoming more and more apparent in spite of the declining level of US domestic activity.  The only commodity to really stay away from is oil, as the decline is slowing US demand.

Russia is likely behind Iran's intransigence. Russia has it's own economic problems, and is dependent on oil revenues.  Short of war, there is little they can do to end the oil glut. Strange bedfellows Iran and Russia. Shows how dysfunctional Iran's leadership is, as both depend on oil more than anything else. Economically they are competitors, and philosophically they are at odds in spite of both being fairly repressive regimes.

[rickortreat]

Just wanted you to know I'm not the only one who sees this:

http://jsmineset.com/

Of course I learned a good deal from them, so it's not surprising that I see it like they do!