The Building Storm

Hopefully the PTB can maintain the upward movement of gold and silver within the confines of our trading ranges and longer term channels. This is the only way the trade of gold and silver will not run off and leave many of the traders of these precious metals. If history repeats itself then we should expect to see the true power kick the can down the road for another year as stagflation continues to grow and exert its painful effects upon the most vulnerable of the population….whick include many of us. Ultimately as stated here many times…….the price of essentials will destroy the developed world’s fiat ponzi and force a major debt restructure.

As you watch politicians in Ireland and Portugal you get an idea what politicians will do to engage the debt issue. Austerity is NOT palatable to the masses and certainly the politicans can put their fingers up to the wind. Meanwhile the media is asking hard-hitting quistions like “how can the market keep going up with all this going on?” If they only knew within this inane, simplistic question was the real question they should explore. Only we know they would not want to find the answer. It would confirm their fears. That their jobs and their fundamental beliefs and existence was all structured by the greatest organization ever. NOOOO we couldn’t get that conspiratorial in our stayed world of American Idol.

I CAN say with reasonable confidence that gold and silver are going much much higher but not without some nasty pullbacks and therefore great trading opportunities for those that like to play this game. We could be going into a multi month consolidation/pullback for metals or we could be going to the 50/1500 silver/gold levels in the next few weeks……I’m going with the move up near term. I could be wrong but I just don’t see enough froth in these metals yet for a serious smackdown. In fact with QE2 and Euro fires going I like holding in this environment. But be aware if you have a nice profit…….take some of it over the next week and try and trade the rest. Overall this is a really nice position to be in with the precious metals. ANY pullback to longer term support is to be bought.

Read more at Great Depression 2