GOLD AND SILVER BOUNCING update II FABER

Looking like the buyers are wanting to play long ball today. Not surprising but don’t get to comfortable. We’ll see how the volume plays. Certainly we are NOWHERE close to a top in these markets. I want to get that out right off the back. I had a young investor tell me smuggly a couple of days ago that he would not invest in gold or silver and smild knowingly as he gave his reasons…..it was in a bubble and he doesn’t chase bubbles. I thought that his answer probably reflected the majority of investors out there…young or old. They have no understanding of what these metals represent.

Will they ultimately create a massive parabolic bubble of historic proportions? Probably. But if you wait for the top of an asset bubble in commodities to form then you are playing with fire. For one..when these go parabolic in the end the volatility is ten times what it is today. It will be heralded by 200 or 300 point daily moves. NOT 20 or 30 like now. THAT IS ALMOST A CERTAINTY…….200 to 300. More than likely there will be extreme euphoria for the metal…at least PANIC for the metal…..and YOU WON’t want to sell your metal for fear of recieving a zimbabwe currency that would be worthless withing a few days. I am NOT going in to what you should be doing instead but one option is to just hang on…one option.

I laughed at how incredibly naive his response was as he related that he was invested in bonds……My jaw dropped. I asked did he recall that gold sold for 35$ an ounce in the early 70s. It then ultimately ended in a parabolic spike to over 800 in 1980 and crashed to under 300 in the next 4 years while the fiat ponzi crowd took over the derivatives game for the next twenty years and created the greatest pyramid ever witnessed. Whats funny though is a gold investor in the early 70s still had an 800% gain in their investment AFTER the crash (orchestrated by the cabal) The low price of the metal continued through the late 90s with continued Central Bank selling…..hehehe. They had to keep a lid. Then the commodity cycle began to take place with gold once again moving as the cycle of fiat pyramid was becoming long in the tooth. Now we have gold at 1400 and IMO headed to 5 or 10K….That could be ultimately a 3000% move off of the late 90s low. Not a bad return…SO WHAT if it crashes from there 80%….you still are up a thousand percent from 1999. These numbers are just mind boggling. Here is the kicker and here is the MAIN reason you want to have physical metal. It is truly a store of wealth. It could literally explode in price as the current printing press continues out of control and the overall deficit/debt crushes the economy.

Ask you friends how many own physical gold……..NONE. Sounds like a bubble to me. The MSM like WSJ….CNBS….Bloomberg….Money Magazine….etc all tell you gold is a bubble……you better listen….one day they will be right.

PS ask yourself a simple question …. why do all central banks own gold? Why? You don’t. They do.

update I……clusterfock

http://www.zerohedge.com/article/deplorable-belgium-12-month-auction-validates-belgium-decision-pull-sovereign-issuance-due-m?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

update II…..faber interview have fun

http://www.goldalert.com/2011/03/marc-faber-sees-qe18-wwiii-ahead/

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