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The Mission Of The Silver News Surfer Has Always Been & Will Always Be - To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

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Citi: This Chart Predicts A Massive $275 Surge In Gold

December 12, 2013 8:39 am est

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!

Now, onto protecting your wealth…

With all this great (BS) news about the November jobs report and last week’s weekly claims down – I’ve mentioned that the numbers should reflect more positively as the unemployed lose their benefits Merry Christmas: Millions to lose jobless benefits

If the economy is looking up here in the US, as they are leading (or the better term is mis-leading) us to believe and people are expecting a December taper, then why did S&P just downgraded US growth forecast ?

This is damn confusing… It’s even hard for me to keep up and you all know how much I research. Also, with the story I brought you yesterday about the “Budget Deal”, Stockman says this Budget deal is a ‘joke and betrayal. He says with this great budget deal, they finally stopped kicking the can down the road, now they have kicked the can into the stratosphere!

One thing is for sure – We do know whatever happens can not last forever and soon, the negatives will turn positive and the positive turns to negative; it’s just evolution.

Here we have a darn good Case For The Crash, which then brings up the question How Far Will Stocks Fall This Time? Now take note that its not only the equities that will crash – The bigger problem is that  Our Currency Is Being Debased, And One Needs To Protect Their Capital so consider this…

There is a storm headed our way, and its the big one – We have a (potential) stock market crash, a dollar decline led by government debasing and geo-political tensions (up the wazoo)

You have China buying all the gold they can get their chopsticks on (at discount prices thanks to the US) China Mainland Gold Import Accelerating, Up 200+% YOY what do you think is the likely outcome for gold?

Over here we’ve got Rick Rule saying all the Fundamentals Of Gold are Good – So do you Trust G-Data or Trust Sprott and other monster players like Jim Sinclair who points out that The latest Bank Participation Report showed the most bullish extreme seen yet?

To break it down as simple as apple pie, 2014 will ring in disastrous consequences if one is not prepared or positioned properly. So I would say to take those tax losses this year and re-think and re-adjust your strategy for what is ahead for 2014

Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….

Now, onto the breaking news that matters…

Triple Confirmation of a Double Bottom in Gold?

Today, top Citi analyst Tom Fitzpatrick says…This Fantastic Chart Predicts A Massive $275 Surge In Gold – We have believed and still believe that gold has bottomed and is putting in a solid base here.  We’ve had a good bounce in recent days as we head into the middle of December.  Trading conditions are becoming thin and we obviously have some event risks as people await what comes out of the Fed; I firmly believe we are building a base to move higher as we head into 2014, but it’s hard to say what the gold price will do in the final weeks of 2013.  Regardless, gold is certainly building a platform to move higher.

I think in terms of the next impulsive move in gold it will be to go and test that area around $1,360, which was the peak of the last bounce we saw in October.  If and when we get above that level, which we think we will, then we are looking for gold to go to that area of resistance at $1,434 (see chart below) This will be quite pivotal because if that $1,434 level is taken out on the upside, it will have ensured a bottom has been reached in gold.  Meaning this will complete the double-bottom from late June and very recently.

This will also mean we have started the next leg higher in gold. This dynamic will send the gold market back to retest that major area around $1,525 to $1,530, which was the breakdown point seen earlier this year.

Read More Here

This 2014 Surprise Is Going To Cause Gold To Super-Surge – Technically we have now seen a double-bottom off of that $1,180 low.  So yesterday’s bounce was surprising to some, but we expected it.  Most important is not that gold has turned the corner, but that gold is now setting itself up for some key upside targets.

The first target for gold is $1,320, and this is followed by the $1,380 level.  After that gold will target the $1,500 area.  So we are talking about a significant move in gold.  There is no question that it will be a further drop in the US dollar.  The US dollar has been hanging by its fingertips.  So we will see at least a 10% drop in the value of the US dollar, and this will be more than enough to break gold out of this trading range and into much higher price levels.

I see 2014 as a continuation of the secular bull market in gold.  In the fullness of time, 2013 will simply be seen as an interruption of a very long bull market cycle for gold. As an example, there is a tremendous amount of evidence that China keeps on accumulating enormous amounts of physical gold.  There has to be a reason for that.  On the Shanghai Gold Exchange they are delivering an awful lot of gold, Eric.  Also, the bar premiums continue to remain in place because of the tightness in the gold market.  China is running a very high inflation rate and gold has been a very good investment in renminbi for the Chinese.  This is why the Chinese continue to accumulate.

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Western Governments Try Everything To Preserve Their Fiat Currencies –  Interestingly, while major Western banks have been found guilty of one transgression after another, I don’t believe that any Chinese bank participated in these devious schemes. And, when it comes to gold, I will follow the Chinese and not the US. I will take advantage of these lower prices to buy more and not to sell.  I also believe that the price of gold has made its lows for the year.

Gold prices have found solid support above the $1200 an ounce level. I expect to see further consolidation but believe that prices have completed the correction which began in September. While it is difficult to calculate exact figures, it appears that China has bought in excess of 1200 tons already this year. If the figures are correct it seems that since September 2011, China has imported a whopping 2380 tons of gold. And, since 2009, the Shanghai Gold Exchange has delivered more than 8000 tons!

Read More Here