Coach...hang in there...we just saw gold blow through $720 resistance on its way to $730-740. There are so many recent indicators that we are soon to see a dramatic turn of events that could come from any of one of many probabilities. Technically, there are charts galore, some of which have been posted here, edifying the case for a new bull cycle for the PMs. Fundamentally, we are awash in supporting data.

I had have had a very unscientific criteria for the bottom in the PM stocks...which is that the bottom should be close to the annual lows of the blue chip PMs. We are there.

As for all the other very recent musings of everyone from Sinclair to Willie to Schiff and many more, never have I seen such pregnant expectations for the present cycle having run its course.

Alf Field starts with the very basics re the fractional reserve banking system being at the core of it all, resulting in a possible "category three" inflationary outcome. Willie points out that the U.S has to print like H as the last defense against a UST bond default. The result will be a drop in the dollar as bond interest rates must rise. Deep debtor nations, the US and Britain feign being in control, which they are longer with their failed banking systems...which will be exposed on the global front very soon. Big changes are coming with new rules dictated by the new creditor nations. gold and silver are going through the roof with the coming COMEX defaults. (This now from numerable sources). Gold and silver will emerge as stores of value along with a new currency regime.

The Larry Edelson paper (posted earlier here) reminds us of the enduring importance of gold to the economic system over the last 100 years. (actually for thousands of years). Basically, stability during gold standards or quasi-gold standards alternating with inflation during periods of no gold standard re currencies . We are now at the commencement of a new cycle where gold will be revalued to support the value of the monetary base to reduce the burden of insane debt. This will be major with gold being revalued up by a factor of at least 7 times to as high as 20 times. Inference is made to the G20 meeting this week. (Something has to be done imminently). Edelson thinks they will not confiscate gold as it is too late. Gold sales will be halted, with its book value to be raised from $42.22/oz. "to a price that monetizes a large enough portion of the world's outstanding debts." Three new monetary units of exchange will be issued (dollar, Euro, Asian currency). By monetizing to 10%, gold would be $10,000/ounce.

Ken Gerbino speculates that continued bailouts will require massive amounts of dollars therefore very inflationary and good for gold. Since banks don't trust each other they will buy gold under the table (Dubai just bought $2.5 billion) as the dollar is going to be debased dramatically while gold cannot be debased. Bullish forces for the dollar are ending. Hundreds of millions in china and India will buy gold as an inflation hedge. Even a small percent of tens of Trillions of cash in U.S. and European funds will seep into gold to effect stark results. 400 cash rich hedge funds will look at the undervalued mining stocks and start buying.

Ted Butler brings us new proof of silver/gold price manipulation linking JPM, CFTC and the U.S. Treasury. ..not that we needed it. (Morgan Stanley today is predicting a higher gold price...go figure..do you think the jig is up?) We all know the massive short positions on COMEX are being blabbed about globally and all are expecting massive defaults. I wonder what the game is? Cash settlement won't do it as the Pms will soar. Maybe being massively positioned long (counterfeit long?) and sending gold/silver soaring is their answer but doubt it. JPM made tens of billions taking the pms down, what will they do for an encore? There is only one way to go now...UP.

Adrian Douglas market force analysis predicts that the end of the US dollar is upon us...and gold is about to sproing upwards. Any supply squeeze (COMEX) due to rising gold prices could be extreme rocketing prices up. John Reade at UBS noted a sharp increase of silver being shipped from Euro banks to India indicating that their present supplier for 5 years, China, was no longer exporting silver. Hmmmm. He reminds us that the sharpest changes in silver prices over the last ten years have happened when China has done so.

Eric Sprott overlooks the theory of gold manipulation with some meat and potato gold price musings. The prevailing market sentiment today is fear while the markets/assets deleverage. The $US is benefiting from short covering as the leverage is unwound. Thus the price of gold in $US is down. Oddly gold is not reacting to the present financial crisis as a safe haven, although it has done well in most other currencies. Central Banks are being ignored. Paper based assets are no longer considered safe and when "the markets realize this, the outcome should be highly bullish for gold." Of particular relevance, gold is one asset that is no one Else's liability. It has no default or counter party risk....like derivatives. Even cash is the liability of the central bank. During financial crisis there is no trust. Gold is the only true safe haven asset. The fundamentals for the $US have never looked worse as bail outs and deficits and future commitments escalate exponentially. (I note that John Embry likes that word very much). The present flight to the $US is a knee jerk reaction that is temporary. What will it buy in the future versus gold? In Iceland the Krona has devalued 80% and people were wishing that they had owned gold...as soon will Americans. Violent currency movements are now growing globally. People the world over are flocking to gold and silver coins. If only a tiny portion of the world's $150 Trillion in paper assets shifts to gold...well, you get it.

Well, folks, PM production is declining, mines are being mothballed due to rising costs, byproduct silver production is waning rapidly, ratios of gold to silver, oil, the DOW etc. are totally absurd. All PMs are oversold and many stocks are down 80% over the last few years. Demand is rising more than reported while the physical is being sold at premiums of 60%to 225% to the paper price. There is virtually no inventory of silver left. We won't even mention the corrupt elephant in the room or the depressing US economy/jobs/manufacturing/energy, etc. True inflation is 14% give or take. All of this is old news now. We await the "shock", "surprise", "big event" that many are predicting.

COMEX Options expiry for Dec. delivery is next Thursday, a huge month for both gold and silver. Can "they" keep the lid on until then...or perhaps until Nov. 30th latest, first day notice?

"Can you wait? After all this time and pain, can you wait? I can." Sinbob

Musings of another "patient" (impatient?) investor!

Too dumb to sell! To dumb (broke) to buy! (A generality, not aimed at Sinbob!)

Waiting ("patience!") is apparently the abecdote! With the case of champagne in the closet at the ready!

RUF