Dear Comrades In Golden Arms,

The final Pillar in the gold bull market is a bear market in US Treasuries.

The increase in the discount rate to 0.75% is driven by market realities and a desire to be able to sell US Treasuries as foreign demand falls off.

The bull market in gold moved from $400 to $887.50 in the 1970s as interest rates rose from 3% to 14 7.8% on Ten Year money.

Once again the knee jerk reaction is to sell gold and buy the dollar. Be assured this must happen.

Because the final Pillar is falling while Gold is over $1000, you can look at Armstrong's $5000 prediction as a realistic possibility.

Stay the course.

Respectfully,
Jim (Sinclair)