The price of gold has fallen from its record high hit earlier this month.
But I believe this pullback to be very short term in nature.
In fact I expect gold to hit $1,500 an ounce within the next few weeks.
And today I’m going to tell you why…
We’ve been down this road many times over the past ten years…
Each and every time that there is a correction in the price of gold, the main stream media jump on their band wagon touting the death of gold.
They’ve pushed the anti-gold button time and time again was at $400 an ounce… and $600 an ounce… and at $800 an ounce… You get the idea.
Smart investors know not to be fooled by the government media complex. But those new to the gold market don’t yet have enough confidence to weather the sometimes volatile trading pattern that has been going on for over ten years.
Let me reiterate what I have been saying correctly for the past decade…
Gold is going higher — no matter what you hear from anybody, anywhere, at anytime.
When the price of gold has corrected in the past, it was a buying opportunity. And these buying opportunities have consistently made us money.
Richard Russell of the Dow Theory Letters is absolutely correct when he states:
Just as the bear wants to go down while taking the greatest number of stockholders with it, the bull wants to advance while taking the fewest investors with it. Therefore, this gold bull will try to shake off as many gold investors off its back as possible as it rises. The best way to do that is to violate so-called support levels.
In other words, gold will have sharp corrections from time to time while continuing to advance overall in the market, year after year after year.
The gold bull will desperately try to knock you off at times as it kicks and snorts and bucks like mad.
It doesn’t want you to come along and enjoy the tremendous profits that are coming.
You have to be absolutely determined that you are going to stay on, regardless of what you read or hear from the mainstream media buffoons.
This comes from knowing what you are doing and why; thus the reason you need to study and go to the right sources of information.
I have been expounding the details on why you want to own gold and silver for over 12 years now and 10 years on the precious metals junior mining stocks.
The general stock markets worldwide look like they are setting up for crash mode. I would tell you to get your money out of the DOW, the NASDAQ, and mutual funds while you still can.
The currency moves in the past month have been spectacular to watch and indicate to me that we are nearing the inflexion point. Currencies will continue to be like musical chairs as the hot money runs from one failing fiat currency to another in search of the illusive safety they seek.
But in the end, they will all find gold as the only sound currency mankind has ever known.
With each successive wave of financial failure throughout the world, the pulsing momentum into safe haven assets like gold will grow in statue with each new failure.
The de-coupling is underway now, and precious metals prices will begin to move higher in much larger increments.
As I travel around, many investors ask if the mining stocks are going to crash again. I would say that in the short term, anything is possible… But I don’t think junior mining stocks will suffer like they did during the first financial meltdown.
The safe haven moves into the precious metals will quickly translate to the precious metals mining shares as well.
While the world stock markets will be tanking, I believe our market will suddenly come to life and be one of the few places of refuge.
Ownership of physical gold and silver along with ample cash is where you want to be right now as the drama unfolds.
If you have this position, staying the course with the core positions of our quality junior mining shares should be much easier to handle as the world financial system implodes and the de-coupling gathers momentum.
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For the year, the Hard Money Millionaire portfolio returned an average of 21.3%. The Barclay Hedge Fund Index, which uses data from 1,658 hedge funds around the world, calculates that hedge funds returned an average of 24.1% for 2009 — only slightly higher than his average return.
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Editor, Wealth Daily
Investment Director, Insider Alert and The Mining Speculator