The gold and silver “smash” is just about over. The big investment banks have been smashing the price in the paper market in an attempt to move the market on an emotional basis by discouraging metals investors. For those of us who believe that the macroeconomic pictures demands higher gold and silver prices, this was an excellent week to add to our positions. The big buyers such as China must have been smiling this week. Underlying gold stocks were smashed as well. If you believe that reality will prevail, you were not moved by the depressed prices but looked to add to your position, however little it may be.
$4,000 to $5,000 is the range for gold to achieve. The current price is not reflective of a top in the market but best reflects a bottom of the current wave before the next move upward.
Currency wars will continue to support price increases in gold. Quantitative Easing (QE) will continue as we will probably see the official 2nd dip of the Great Recession admitted by those analyzing the rearview economic mirror. Buying gold, silver, oil, gas, and other physical assets is a bet against the value of the U.S. Dollar and acts as an insurance policy against the further devaluation of the purchasing power of the Dollar. If the economy was truly rosy as the talking heads suggest, we would not have unemployment at a staggering 22% according to shadowstats.com. The emperor has no clothes… really!