Gold Breaks Out (Again) - $1,250 Breach Imminent

[Ares]

The only question now is who will hit 36,000 first - gold or the Dow. Sorry Bernanke - you can't have both. The good thing with gold is that unlike stocks, gold actually trades after 10 am, unlike stocks, when just the liquidity rebate algos churn ultra high volume on ultra bankrupt companies during that time. Also, breakouts are actually validated by high volume, unlike stocks where the opposite is true as banks hope to fool gullible mom and pops into throwing their money into the Keynesian fire pit.

<img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/summers/Gold%205.12_2.jpg"/>

http://www.zerohedge.com/article/gold-breaks-out-again-1250-breach-imminent

[oldmansmith]

Not a lot of hoopla on the MSM either. We are nowhere near the ultimate top.

[1970 Silver Art]

Not a lot of hoopla on the MSM either. We are nowhere near the ultimate top.


Actually that is good that there is not a lot of hoopla about it on the MSM because it will give GSUSers a chance to add to the stack before everybody else tries to buy all at once.

[gunDriller]

Not a lot of hoopla on the MSM either. We are nowhere near the ultimate top.


Internet media is giving it headline status. e.g. Yahoo Finance, it's been a lead story for about 2 days.

Link 1 (http://finance.yahoo.com/tech-ticker/gold-surges-time-to-climb-on-board-or-is-the-party-just-about-over-484332.html;_ylt=Ar1KebmpDiRSaYU1D1JRHLK7YWsA;_ylu =X3oDMTE2N2NxaG90BHBvcwMxMARzZWMDdG9wU3RvcmllcwRzb GsDZ29sZHN1cmdlc3Rp?tickers=gld,ABX,GDX,^dji,^gspc ,FCX,NEM&sec=topStories&pos=8&asset=&ccode=)

Link 2 (http://finance.yahoo.com/news/Gold-Prices-Ride-Inflation-tsmf-993294996.html;_ylt=AhUC_7ysnT0z7b_OlfZLsPG7YWsA;_ ylu=X3oDMTE1dmpsdmJmBHBvcwMzBHNlYwN0b3BTdG9yaWVzBH NsawNnb2xkcmlkZXNpbmY-?x=0&sec=topStories&pos=1&asset=&ccode=)

of course APMex is a big Yahoo advertiser now.



EDIT: Changed long links to named links to prevent horizontal scrolling. -Gaillo

[ximmy]

I'm still adding to my stack.. we should see 2000+ easily within the next two years...

Does anyone really believe the FED can indefinitely print dollars... let them keep it up.. $1300 = once ounce gold, $2000 dollars = one ounce gold.... $3000 = one ounce gold... go for it FED!!!

[gunDriller]

I'm still adding to my stack.. we should see 2000+ easily within the next two years...

Does anyone really believe the FED can indefinitely print dollars... let them keep it up.. $1300 = once ounce gold, $2000 dollars = one ounce gold.... $3000 = one ounce gold... go for it FED!!!


i was looking at the curves for March April May 2010, since the CFTC hearings that were March 25.

Silver was $16.75 at the time of the hearings. Gold was $1090. So here we are at $19.50 and $1240 6 1/2 weeks later.

continuing the math -
6 days in March + 30 days in April + 12 days in May = 48 days.

18% for gold, 16% for silver.

so if it does that for the rest of the year (continues increasing at that rate, a total of 7.6 48 day periods) ... silver increases 3.1 times in price (1.16^7.6). gold increases 3.5 times in price (1.18^7.6).


in other words - at the rate of increase we've seen since the CFTC hearings, silver will be at $52 and gold will be at $3815 on March 25, 2011 (the one year anniversary of the hearings.)

http://www.kitco.com/charts/historicalsilver.html

http://www.kitco.com/charts/historicalgold.html

i don't think the increase will be as regular as an exact continuation of the trend since the CFTC hearings. but i think JPMorgan might have lost one of their primary market manipulation tools recently, because of the hearings and the Andrew Maguire revelations, etc.

with Europeans going crazy for gold, and apparently silver, i think the prediction of 2000+ in 2 years is very conservative.

i'm not sure that even a complete stock market crash would knock gold down at this point. last Thursday, gold responded to all the craziness by rising 2%.