Toby Conner from GoldScents is on a roll again (along with the metals themselves) and lately is writing about lots of stuff way better than we can again, and so he will be featuring here some more.
This group of articles feature some pretty brave timing calls, and whilst we would agree with the sentiments, and hope he is correct, we wouldn’t have been brave enough to publicly predict that what we’ve all been waiting for, for so long is just about to happen over the next two months, however we are (more than) happy to feature somebody else saying it ..Over to Toby..
By Toby Connor - http://goldscents.blogspot.com/
The recent rally in gold, oil, and commodities in general has been extremely powerful. Despite protestations to the contrary by our clueless Fed president, it’s very clear what is driving this massive commodity inflation when you look at this chart below.
That’s right we are now seeing the unintended consequences of printing money [See QE to Infinity]
Just as soon as the dollar started to collapse commodities began to surge. And if you think it’s bad now wait till the dollar breaks below the November pivot. When that happens, and it will happen, it will signal that we now have a yearly cycle that has topped in only 4 weeks and has already moved below the last yearly cycle bottom. That my friends is an incredibly bearish sign.
At that point the market will no longer be able to delude itself that everything is OK. At that point inflationary pressures will surge out of control. At that point Bernanke will understand the magnitude of his catastrophic blunder when he ran QE2. And at that point it will be too late to stop.
Actually this path was already determined when Ben opted for QE1 to abort the debt cleansing process that was underway in 08 and 09. Yes he bought us a little time but the ultimate cost is going to be much greater than anyone could have foreseen. It would have been much better if the depression was allowed to run it’s course. We would be most of the way through the pain by now and ready to come out the other side into a golden age. Instead we have another decade or more of misery ahead of us. All because our leaders don’t have the foresight to see the consequences of their actions.
Now on a more immediate note the dollar is due for a dead cat bounce anytime now. When it does it should force a brief correction in gold, oil and commodities in general.
This will be your last buying opportunity before the final parabolic move begins in earnest. Once the dollar breaks below that November low all hell should break lose in the currency markets forcing all commodities, especially gold and silver into what will likely be one of the most powerful rallies in history.
Sunday, March 6, 2011
At some point in any bull the market finally “catches on”. That recognition phase shows up as an explosive expansion in volume on the weekly charts.
In early `05 the market finally figured out that the steady rise in oil price wasn’t a fluke. That it was in fact a massive bull market in the making. You can clearly see this “recognition phase” in the two charts below.
The same thing happened with the major mining stocks in early `09.
Silver has now reached the recognition stage.
The market has also figured out what the bellweather mining stock of this secular bull is.
Friday, March 4, 2011
From the March 2nd nightly report.
“Folks I want to start preparing you for what’s ahead. Once we get into the final daily cycle up in gold I think we are going to see a parabolic move unlike anything we’ve seen yet. And on the flip side as the dollar starts to drop, or maybe crash is a more appropriate term, into it’s final three year cycle low we are going to see an absolute horror show unfold. That combination is going to drive gains unlike anything any of us have likely ever made before.”
The world will be in an utter panic to get rid of dollars. And the stock market is not going to provide protection from this kind of inflationary storm so a lot of those dollars are going to end up in the commodity markets, and especially in the precious metals. When that kind of money hits a thin market like gold, and especially silver, it will drive gigantic gains.
There is going to be extreme temptation to jump off early simply because one can’t believe they could possibly make that much money that fast. Let me warn you now don’t give in to that temptation. We know what to look for at a three year cycle low and we know what to look for at a C-wave top. Until we see those signs sit tight. Trust me it’s going to be one of the hardest things you’ll do all year.
Folks, fortunes are going to be made in the next two months.”
We too are more convinced with every passing day that the start of the real Dollar and global collapse is imminent and that will drive Gold & Silver to new highs, and that although we have been saying it for a very long while, very soon now, that “Told Ya So” moment will be here.
We think that with every passing day we are closer to the global recognition that a return to the Gold standard in one form or another, as the only proven logical way forwards, and Gold is much cheaper now than it will be once that happens..