This guy was tipped in the deflation camp and calling for his people to stay on the sidelines. He couldn't come out and say ABSOLUTELY take a core position as we are for sure going long but short term it's anyone's guess. I can't stand these fair weather fans....PURU we don't really need for yout to tell us to buy gold today. We're already long and strong and held through the correction of 2008. I love Jim Willie, he told like it is and was right....all along and so was Doug Casey....timing surely was off, but who cares, stay long a core, believe and dont think you can outstmart the banksters by trading. YOu will outsmart them by buying and holding through the volatility and taking delivery of both physical and your shares. Just be smart about holding some emergency cash to eat, physical and some allotment in mining shares....i mean what else is there.

Buy Gold!

By Puru Saxena Oct 8 2009 10:34AM www.purusaxena.com

Two day ago, the price of gold broke out to a new high and we are delighted with this result. As you will recall, we were expecting an upward breakout in gold and it looks as though its price will now surge over the following months. It is noteworthy that since the breakout occurred, gold has managed to stay above the previous high. The longer the price of gold stays above US$1,030, the greater the probability that the yellow metal will stage a spectacular rally until spring next year.

It is our contention that this breakout is the real deal and the pathetic action of the US Dollar Index supports our view. Rather than rally, the American currency has embarked on another southbound journey and this is extremely bullish for gold. Furthermore, the recent zoom in silver and the precious metals mining stocks is additional evidence that this breakout is not a head fake. Figure 1 highlights the recent breakout in gold. As you will observe, gold's bull-market has been punctuated by lengthy consolidations and this is the third time gold has broken out towards the end of the third calendar quarter.

Figure 1: Gold is about to shine!

Source: (www.stockcharts.com)

If history is any guide and the trend consistency is intact, this rally will continue until spring next year and we could see a 40-50% advance! Should this rally materialise, the mining stocks will go ballistic and silver will rocket above its previous bull-market high.

In light of the recent breakout, we suggest that you hold on to your positions in the precious metals sector and add more capital.

The long wait is finally over and precious metals bulls are about to get rewarded! We plan to hold on to our positions for several months and will consider booking profits when we see an epic blow-off early next year.