My Home     About Me

As you may already know, our objectives are somewhat more tame, expecting a peak of around $1,785 by 2009 ~ 2010 and we have very compelling reasons to believe this could happen, with prices first going to new all time record highs within one year and $925 ~ $1,050 by sometime in 2007. Thereafter, we would expect a one year pullback or consolidation and then we would expect a strong upsurge to begin, in late 2008, taking prices to our projected levels of $1,785. The wild card is the rapidly growing 1,000 to 1,500 tons per annum deficit in Gold production against sharply increasing demand approaching 4,000 tons pa. With production dwindling between 2,500 ~ 3,000 or so, this situation is untenable and getting worse and it is really starting to bite and that is why we're seeing substantial price increases of late.

As we stated yesterday, just as with Oil, the severity of the situation with the World just coming to grips that Oil is a finite commodity and that we really could run out of Oil within a few decades, or run desperately short and in just the same way, we could run desperately short of Gold, Silver, Platinum, Palladium and Copper as well as some exotic metals. By some measures there's only 10~15 years of mineable Gold left in the World and that is going to play havoc with prices, especially as greedy speculators horde supplies and corner markets as the reality of what we are forecasting here today becomes mainstream and Investors start diving into Gold stocks like never before. Over recent weeks, we are hearing increasing numbers being proffered on Gold within shortening time frames, from $850 per oz by Merrill Lynch to $900 per ounce from Sr analyst Emanuel Balarie at Wisdom Financial Tuesday, to John Hathaway of the Toqueville Fund's very matter of fact assertion yesterday, that we are heading for 4 digit pricing in Gold, ie $1,000 plus per ounce and soon and fairly easily in his view and as one of the most astute players in the Gold World, Rod McEwan is saying Gold will hit $2,000 by 2010, nobody knows this better...


In Conclusion

After calling the major lows in the US Equity Markets, virtually to the day in 2002 and 2003, we were among the very first to call for new all time record highs in the broadest indices as early as exactly three years ago, in April 2003, noting the exceptional strength in the broadest of US indices such as the S&P Midcap 400 Value Line and Russell 2000 and Banking Indices looking for new records within year 2003.

Astonishingly, those records were made by the fall of that year and records have been set ever since, almost right up until yesterday... So, once again, we are sticking our necks out and declaring new all time record highs in Gold of $875 plus will occur very possibly within just a year from now and most definitely in the outer months through December 2010, which yesterday touched $750 per ounce. Furthermore, in a World running out of Gold as we know it is, we're not putting any limits on Gold's upside, save it'll be the Greatest Bull Market ever...

Trade Well
From the Desk of Savant

Basic Materials sector   Technical chart patterns   support/resistance levels   ETFs (exchange traded funds)   Deron Wagner   iShares Hong Kong (EWH)   S&P 500 chart pattern   emini's S&P 500   earnings   economic data   Biotech HOLDR (BBH)   Emini's Nas 100   Short selling ETFs   exchange traded funds   sector rotation   etfs   corn futures   selling options   commodities   mcio