Thursday, February 9, 2012


'Next target for Gold at $ 1,800/oz, for Silver at $37/oz'

Meanwhile, the stock market is caught in the puzzle of will Europe emerge whole from its current troubles, or will the Eurozone fall apart like a deflating balloon? That plus the following question: Does the US face another four years of a socialist president who seeks to solve all problems by either taxing "the rich" or throwing trillions of man-made dollars at the screw-up in question?

The poor man in the street is facing questions and doubts. Will he be at the same job a year from now? And if he gets a pink slip will he be able to find another job?

If the year 2012 has a title, the title should be "uncertainty."

Nobody's asking, "What happens if there's a recession in the next year?" Or "What if unemployment is 9% or more at presidential election time?" If either of the above occur, the GOP could run a donkey, and it would be our next president. Obama must have a good economy to win.

What about gold? Remember gold? Don't worry about the yellow metal. Over the last week gold has broken out above a bearish trendline and the direction is now UP. The next task -- for gold to trade in the 1800s.



Below, silver in a down-sloping rectangle. A hugely important upside breakout would arrive if silver could hit $37/oz.


- Umesh Shanmugam

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