5 Market Considerations
1. Gold and silver are seeing a flood of buying. It is highly probable that gold will touch $2,000 and silver touch $40 by the end of April. Egon von Greyerz at Gold Switzerland is even more optimistic. He said in a recent interview that “I think this move will continue and we should see at least $2,000 by the end of March.”
2. Von Greyerz went on to say, “In the last 18 months, world money supply has gone up by $10 trillion. There is massive money printing taking place worldwide. The central banks are doing this, but it is the wrong remedy. We are not going to solve anything by printing. We need to reset the whole world economy and start again.”
3. Chuck Butler, author of the Daily Pfennig, reported that “the results of the January Consumer Confidence number for the U.S. didn’t just rise. It soared! And with all this [economic uncertainty] going on. Hmmm. A wise man once told me that Consumer Confidence is nothing but a gauge on the pulse of the stock market. And with U.S. stocks doing Jedi mind tricks on Americans right now, Consumer Confidence is strong.”
4. Global economic news continues to deteriorate. Consider events transpiring in the US Federal Reserve, the Obama administration, Greece, Italy, Portugal, European Central Bank, Israel, Iran, Iraq, Afghanistan, China, Al Qaeda, the metals, oil, housing, and the list goes on.
5. Tread very, very carefully in this investment environment. Everything you have invested is in the hopes of appreciation. Make certain you are hedged against the downside by a solid position in physical metals.
Quote of the day: “Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood. For these few gold has been the asset of last resort.” – Antony C. Sutton
