Thanks for that latest from JS Kim of SmartKnowledegeU, GWR.

My bones ache from the number of times I have read something akin to the following quote from this article over the last many years:

“…the majority of people worldwide will miss a massive opportunity in gold and silver mining stocks over the next several years due to their misguided belief that gold and silver mining stocks cannot escape the throes of banker manipulation…”

A similar common refrain, “in the months and years to come”, has saved the ass of many a forecast. At this stage of the ten year plus game, such fearless predictions leave me stone cold. The ‘Idiot Abroad’ series comes to my when I think of JPM investors such as myself….there must be precious few left. What Kim is reinforcing is exactly what we raw nerved JPM bugs have been tortured with for years. Expect unexpected shocks to continue until dead.

On the other hand, we are given a ray of light that hope springs proximal, as Kim later postulates:

“The banker price suppression scheme against gold and silver mining shares will fail, and I believe that the fifth approach of the HUI to the 600-610 level will be the time that the HUI breaks above this level for good and heads much higher.”

WHEW! I thought at first we were all lost but now we have a glimmer of hope. The HUI at 600 or so will see lift off. But to where? I look at the roadmaps in front of me, the latest tech signals on the gold charts and three tell me that we are near an upside reversal out of a pennant formation…or at least we can see that it is the likely probability that it will break up out of the pennant to the upside…with the slight possibility that it could go to the downside. Hmmmm. The timeline looks to be within two weeks. But one chart guy says gold can’t go below $1700 and the other figures about $1670…which, if it does go through this level, it cannot go below bottom support at $1600. Let’s not bother with silver because that is a whole other scenario that has many conflicting voices. Other favorites signal that once gold has convincingly gone over $1800 to $1820, the bottom is in.

So, the resolution time is within two weeks. Let’s say by Dec. 21st…just in time for Santa. All we have to guess is how high will gold and the HUI go to the upside, then sell and then buy the dip…and then repeat. But our work is not easy for we have to consider what the banks are willing to sacrifice to us, and how the European drama plays out…and how much printing will go on both in Europe and the US…and when.

Oh yes, almost forgot….options expiry. It fits in to the two week resolution framework nicely doesn’t it? Soooo, next question, what is their plan for shorting gold and silver futures this month? I leave these profound deliberations to others.

As to how all this will affect the price of AUM…..?