Monday, March 24, 2008

International Forecaster March 2008 (#4) - Gold, Silver, Economy + More

International Forecaster March 2008 (#4) - Gold, Silver, Economy + More

The roll over of precious metals futures will be completed by the end of March as the April futures are rolled mainly into June to kick off the next rally. A very bullish opportunity lies here now that the large specs have temporarily cashed out. A requirement of physical delivery under futures contracts in gold and silver would at this point destroy the cartel and cause gold and silver to double or more. We keep hoping that the large specs will take us up on this theory, but they have their hands full of problems which we most certainly understand. Perhaps this surprise demand for delivery will be put off to June to absorb any IMF gold that comes up for sale, if any. We remain hopeful on this point, especially if a killing is made on the small resource stocks. What better to do with your profits than plow them back into physical gold and silver as the dollar is systematically destroyed by the Fed.

Once the bond markets implode due to rising interest rates as risk and inflation grow ever higher, all those trillions of dollars will be plowed into gold, silver and commodities and it will be "GAME OVER" for the cartel as the precious metals blast off on a space trip to the Einstein-DeSitter Radius at the outermost bounds of the visible universe. This event is not far off, and will be the greatest bear market in bonds of all time. Between rising rates due to hyperinflation and risk reassessment resulting from the subprime and credit-crunch debacles along with endless bailouts and nationalizations, dollar pegs broken by oil producers and flights by foreigners from dollar-denominated bonds and treasury securities, this event is baked into the cake.



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