Gold?

Martin Armstrong thinks gold is still in a corrective phase with longer term levels still in ‘bearish mode’…but that it did close out the year positively being over$1434. He thinks that because we are still in deflationary times with asset value declines and the purchasing power of money rising. As long as the demand for cash exceeds that of assets, deflation persists. But this year (where have we heard that before?), with big roll overs in debt, it will change with the demand for public assets (cash) shifting to assets….inflation.

So, in essence, Armstrong is saying much the same as all gold bugs….gold is going up. He sees the low of Jan. being the low of the year. He sees a reversal in the trend to the upside if gold closes above $1762.90 on a weekly basis. Now, as to the time and intensity predictions by others, my head is still spinning from all the various opinions… with Sinclair in a range from $1700 to $2100 (very conservative) to Embry up to $4000…and up from there. They are all right to some degree…and have the guts to say what they think.

QE is happening and will become more intense. A Dubai silver trader calls for $60 silver by Sept. (geez, do we have to wait that long?)

So, India and China are going to pay for their Iranian oil with gold!...and the EU is banning Iranian oil….and banning Iran banned all trade in gold and other precious metals… Hmmm….and, and, and

What about this week ...as gold hits a 6 week high? Whoops…the McEwen jun. gold index was down .75%., but XAU up 2.9% and HUI up 7.3%

Well, we have the options expiry Thursday, State of the Union message tomorrow, Fed. meeting Wed., ... you all know the scoop but I guess one day we’ll be surprised.

Jesse is still long on bullion and short on the stocks…and says Joe Granville has predicted a 4000 drop in the DOW by year end.