It has been humbling to witness how well these markets have performed since making our exceptionally bullish call on the markets back in early August identifying "A New Bull Market in the Making". The number of strong monthly closes that could manifest across a range of markets continue to generate a potentially very bullish setup going into September that could actually stretch right into the end of the year or certainly into the early to middle part of September as there is always the chance of an about face that could still take us down in the fall. We did finally manage to set new near 5 year highs in the OEX yesterday, a significant accomplishment in of itself.

Meanwhile Silver in particular has been surging higher and appears poised for a run through $13 that might even happen today or tomorrow and could have enormous implications for powering Silver higher in the way we have been expounding, could even go parabolic through $20.

Gold could not only follow, but play catchup from a lagging stance of late and with Goldcorp''s stunning takeover announcement of Glamis Gold GLG, Gold issues should trade higher today as it more and more seems any company with decent reserves is a takeover candidate.

Yesterday we once again reminded readers as to how potentially dynamically bullish the metals markets really are and that is one reason why companies are willing to pay such high premiums to acquire qualitative and quantitative Gold and Silver assets. Remember, Placer Dome was taken over for $10 Billion at what may be close to an all time record PE Ratio of 123. The World is running out of Gold and the smart players are grabbing all the assets they can in the face of an increasingly uncertain future, plagued by Nuclear proliferation.

Gold and Silver continue to act remarkably well, especially Silver, implying as we have already outlined in our Special Report: "Can Metals Go Parabolic?" wherein a breakout in Silver over $12.70 or so, could lead to a truly dramatic upswing, taking down a number of the recent significant milestones in the process in rapid succession, ie: $13, $14 and $15 for starters, with veritable extension potential to $18 ~ $25.

Such a move could have an enormous impact on junior mining companies with proven reserves that are close to starting production as it would effectively double their cashflows in the case of Silver and in the event of Gold heading to new all time record highs beyond $875 or so it would bring our 12 month objectives for Gold to reach our new range somewhere between $925 and $1,050, much more realistic and very possible. As we explained in "Everything Points to Gold" a few days ago, Gold and Silver habitually tend to accelerate dramatically higher, often without notice, just as they did earlier this year and of course as they did most spectacularly back in 1980. With the exposition of the idea the Gold and Silver could in fact double their previous highs in this cycle, it brings the possibility of $100 Silver and $1750 Gold sharply into focus and since our target has been for Gold to reach $1,785 by 2009 now for some time, it begins to look increasingly possible with everything going on in the World and a major cyclical for the US Dollar more likely than not due to come in sometime in late 2009 or so. As we have warned on numerous occasions, the time to acquire Gold and Silver is before the mania begins...

Trade Well

From the Desk of Savant