Archive for 06/12/2010

Qualitative Easing

Gold and silver snuck even higher at end of trading on Friday. Since when does the price creep higher at the end of Friday, in the vicinity of the highest price ever? You mean, traders are desperate to own more before the weekend? That almost never happens.

This interview is the first place I have seen the term, Qualitative Easing:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/3_Ben_Davies_-_Massive_Short_Squeeze_at_Hand_in_Gold_Market.html

Note the main point of Ben Davies, CEO of Hinde Capital, is that a short squeeze in gold and silver is at hand. As we have crossed the $1400 barrier in gold thanks to the pathetic jobs report on Friday, the next stop is $1600 or $1800. Jim Sinclair thinks we will be at $1650 in January, which has been his official position for years, believe it or not. He officially made a million-dollar bet in public that the gold price would beat that level in Jan 2011.

For a more sedate and mainstream view, here is a fairly straightforward projection to $1500 or so:

http://www.investorplace.com/24372/investing-in-gold-gold-bull-run-far-from-over/

The question is, where will silver be? Near-term it has broken through a double top and exceeded its recent all-time high (gold has not quite done that yet), so $30 or $31 seems nearly certain (but remember, there is no such thing in the markets). Longer term, some project $135 or so when gold is $5000 or $6000. If we get a near-term blow-off top, maybe we’ll see an impressive spike high in silver.

In any case, buckle in for the next launch of the shuttle, USD Independence. ETA end of Feb 2011, or so.

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