Posco breakout

Breakout of multi-month triangle wedge

Further downside in USD likely

USD has broken to the downside of its downward wedge

GDX to uptrend or break support?

Gold 2001-present support and resistance levels

Note the increasing upward trajectory as well

Japan meltdown

Nuclear meltdown, tsunami and earthquake has collapsed the Nikkei by 18% in 3 days. Japan is currently undergoing a massive catastrophe in terms of human life and the economy.

Watching Posco

Currently watching Posco's strong wedge formation. A break from this 1 year + pattern should be significant

Pension money and gold

Great article from Casey Research talking about the impact that the gigantic pool of pension fund money can have on the relatively tiny gold market. See article here

Some more twisted theory from Fed Birdbrain Lockhartt

To those who understand Austrain Monetary Economics (the only true school of monetary economics) it is obvious that QE1 and QE2 lead to the current spike in commodities including crude oil. However, the birdbrained policy makers once again fail to grasp this obvious concept, and to add insult to injury, are suggesting that more stimulus and monetary loosening (ie. dollar destruction) will be needed if oil goes higher. INCREDIBLE!!
http://finance.yahoo.com/news/Federal-Reserves-Lockhart-Oil-cnnm-3164680201.html?x=0&sec=topStories&pos=9&asset=&ccode=

Gold Price Targets

Either of these three targets are backed by very logical and rational reasoning.

Courtesey of www.goldswitzerland.com

• In the 1971 to 1980 gold cycle, gold went from $35 per ounce to $850 or up over 24 times. If we were to see the same increase in this cycle, gold would rise to over $6,000.
• The gold peak at $850 in 1980 corresponds to over $7,000 today adjusted for real inflation based on the inflation rate as calculated by John William’s Government Shadow Statistics (shadowstats.com)
• Gold and gold mining shares were an average of around 25% of world financial asset between 1921 and 1981. Today, gold and mining shares are only 0.9% of world financial assets. If gold and mining shares were to go to 25% of financial assets, gold would go to over $31,000. But even if we assume that world financial asset would go down by 2/3^rds from here that would put gold at over $10,000.

The three historical comparisons above (and see chart below) would put gold anywhere from $6,000 to $10,000 and this is without inflation, or more likely hyperinflation. In a hyperinflationary environment, the price gold will go to is really irrelevant since it depends on how much money is printed. In the Weimar Republic for example gold went to the equivalent of DM 100 trillion (Papiermark). What is more important is that gold is likely to go up at least 5 times from today without inflation and with hyperinflation gold will protect investors against the total destruction of paper money and many other assets.

2010 Spending Breakdown

Defense, Medicare, Medicaid and Social Security- the 4 toxic programs that are in need of major restructuring if the US is to ever get its spiraling debt woes under control

TIME FOR SOME CHARTS

Here are some charts of critical indices. ie. Indices/markets whos movements can have a significant impact on the overall general economic conditions. I've written a brief explanation of the situation inside chart diagram

Think Silver has gone up too high? Think again. Chart speaks a thousand words

After 2010's spectacular 100+% move in silver, many believe the metal is looking 'bubbly' 'and a crash is imminent. However, in such situations, it is always important to take a step back and examine the bigger picture. The obvious 'bigger picture' is that silver is nowhere near its all time non-inflation-adjusted peak of $50 (inflation adjusted peak is well above $100). Take a look at the following three charts. They speak a thousand words and lay to rest any suspicion of a peak.

Silver from 1971-1978: prices move up more than 400%. One would think of this move as massive and get terrified at the 'parabolic' nature of the move. However, few would imagine that this would be just the beginning.


In just the following 2 years, the silver price rose a further 800%- a monster move in a short period of time.


Here is a large chart from 1960-2002 showing the big picture in a snapshot

All time high but move just beginning

Gold today broke out to a new all time high of $1433. However, as of today, it has only just broken above its 4 month trading range referred to in the earlier post. This alone is a very bullish sign. Further adding to its bullish stance is that fact that today's big up move of $22 occurred in the face of a sharp sell-off in the general equities market. All in all, today may be the start of a big move up, with gold finally breakout out very strongly from its 4 month hibernation. Currently (as of 2/1/11) long UGL, AGQ, GDXJ. Took a short position in EEM on 2/27/11. Also went long bonds (TMF) on 2/28/11