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Overnight, Gold and Silver have been creeping higher yet again, seemingly unwilling to yield much ground on the corrective front and yesterday in an interview with Forbes Magazine, John Hathaway, Manager of the Toqueville Fund and one of the most successful Gold Fund managers of all time in comprehensive and extremely compelling argument for $1,700 Gold made two very profound statements:   Declaration 1. "You''d be a fool not to be buying Gold at these levels".  We are in a long term cyclical bull phase that has only just begun.   Declaration 2. Gold will likely hit $1,700 within a few years as the previous cyclic highs are taken out and have a propensity to double the previous highs in this cycle. Since Gold has had a propensity in the past to actually quadruple its previous cyclic highs of the early 70''s, and did it just 6 years later, one could not only argue a very strong and possible conservative case for Gold (and Silver) to double their previous all time highs in this cycle, but given the rapid run to quadruple new highs by 1980 and some ten times the previous highs in Silver this might fit with our longer term target of $3,700 being achieved around 2019 or possibly earlier depending upon how depleted Gold and Silver reserves might likely be by then. What Hathaway emphasized is that if Gold and Silver demand were to increase markedly, and that is something that $1,000 Gold might induce and lead to hoarding in expectations of dwindling supplies, it could actually impact the amount of production years remaining before the World runs out completely, currently estimated at 11 ~ 14 years, by reducing the number of years of supply to 2 or 3 and obviously, this could have a catastrophic impact on prices, that combined with the threat of major instability in the World could conspire to drive Gold and Silver prices to the kinds of dizzying heights that today investors don''t even begin to take seriously.   Yesterday, we once again made a compelling case as to how runaway Asian growth could increase World Oil consumption to 100 Million Barrels and most Energy analysts would likely agree that there is no way the World can meet that demand anytime soon if ever, without some drastic new sources of energy or alternatives, that may not be able to be brought on line quickly enough. Remember just 6 years ago with Oil prices hovering around $10 after a decade of abundant supplies, not even the best of the best today, could have foreseen the actual potential for Oil prices to soar to $80 per barrel and the same could be said for Gold today, except that today, there are a great many highly compelling reasons why Gold can run to $1,000 per oz and in due time double its previous cyclical highs. But there are others out there on the fringe, who foresee an 8 fold rise from here that could take Gold to $5,000 per ounce. All we can add is: Never say Never. Expect the Unexpected and remember as the father of pasteurization Louis Pasteur also became famous for saying: Fortune favors a prepared mind and being prepared for the inevitabilities that are likely to befall the US Dollar and World Economy in due time, common sense dictates that investing in what based on total accumulative inflation over 25 years combined with the debasing of the US Dollar just to date, puts Gold''s intrinsic value today at around $2,200 per ounce. Common sense dictates that Gold severe undervaluedness demands sizeable investment.   The Charts below would tend to bear out this logic and even though Silver has been surprised as in the early 70''s it potential is awesome.            Silver''s ability to come from behind and go parabolic as in 1979 ~ 1980, should not be underestimated. It portends a interim price range of $25 ~ $75 and based on longer term projections above along with anticipated shortages, a price range of $100 ~ $300 cannot be ruled out... Trade Well From the Desk of Savant

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