-- Posted Wednesday, 6 October 2010 | Digg This Article
| | Source: GoldSeek.com
Rick’s Picks
Wednesday, October 6, 2010
“Phenomenally accurate forecasts”
The other day, we asked what kind of benighted Wall Street lackey would be so bearish on gold and silver these days as to advise their immediate sale. With nearly every central bank in the world on a monetary wilding spree, how, one might ask, could bullion prices possibly fall? And, yes, they will someday — in a big way. But that day probably lies well down the road, since there is almost no chance that a world hopelessly addicted to central-bank “free” money is about to go cold turkey. Europe’s move toward austerity is arguably the only fiscal threat to bullion’s powerful bull market right now, but at the end of the day it is no more a counterforce to global money-mania than a sand castle is to the pounding surf of a hurricane.
In any event, long before the supposed bubble in gold and silver bursts, the dollar would have to collapse, taking the global economy with it into a deflationary Marianas Trench. Until that day arrives, however, one would have to be crazy to think that the bull market in precious metals is anywhere near an end. For now, we’ll stick with a litmus test we proposed here earlier to determine when the bull market is ending. Specifically, we wrote that Joe Sixpack would be telling his poker buddies about mineralization levels in Ghana before bullion peaks. So far, though, as is plain to see, Joe Sixpack has not even discovered mining stocks, let alone Ghana core samples.
Let’s Out the Bears
Speaking of Wall Street lackeys who are bearish on bullion, we’d like to list them publically so that they will be as harmless as belled cats the next time they appear on CNBC (with predictions that will typically lag actuality by months, if not years). If you’d like to help us name names, please post them in the Rick’s Picks forum, along with appropriate quotes from the horses’ mouths dissing gold and silver.
And as long as we’re sniping at Wall Street’s prognosticators, we’ll go out on a limb with some predictions of our own. Silver and Gold futures both reached important Hidden Pivot rally targets yesterday that had kept us properly bullish during this most recent phase of the precious-metals bull market. Our longstanding target for December Gold was $1340.00, but that “hidden resistance” was exceeded yesterday by a small amount, $2.90. December Silver, on the other hand, blew past a corresponding target at $22.505, trading as high as $22.920 intraday. The implication is that both metals are likely to continue moving higher with or without an intervening correction. Specific price levels and forecasts are given in Ricks Picks’ latest gold and silver touts, so if you want to see exactly where we think bullion prices are headed, you can do so by taking a free seven-day trial subscription. Of course, since the rally in precious metals is feeding off the collapse of the dollar, we also offer detailed, ongoing analysis of the NYBOT Dollar Index.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2010, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Wednesday, 6 October 2010 | Digg This Article | Source: GoldSeek.com
