Dear Friends,

I have made it a practice not to comment on other people's opinions as everyone has a right to voice how they see things and express themselves. I also know that no one really knows to the penny or exact day. Having said that, we in the community have given a stage to an expert on long term cyclical economic and political events.

Martin Armstrong is a master of this discipline and may have no real competition between cycle and historic commentary. However, as you can see from one example of the large amount of incoming mail I am getting over the past few days, I need to answer Martin's third bearish call.

The first two calls for $1100 did not materialize. In fact, gold twice went in the opposite direction with a fervour.

I do not agree with Martin here and now.

By normal measures, the US dollar is violently oversold. The dollar and gold has been tied whether I like it or not.

There are special circumstances in the dollar now as the Fed has turned the light on domestic QE. I cannot see a significant dollar rally as a result. I also cannot see gold doing worse than chopping into the $1700 range.

If there is anything correct to his bearish prediction, which I doubt, it would take this action to a chop between $1650-1764, but I think we are now moving into the $1700-2111 range.

Martin Armstrong is the master at the long term cyclical events. To abandon gold now to try and buy it cheaper in 60 to 90 days with the world of finance in the condition it is in, is in my mind MADNESS.

Sincerely,
Jim