The time has arrived in which I believe precious metals will now make a new bull leg. This past week has showed that gold/slv has diverged from the negative correlation associated with the dollar. Dollar has rallied, yet gold/silver has also rallied. This buying has been in the face of loss of confidence in the euro. The dollar is no longer the safe haven that others seek. I believe people are starting to realize that the dollar is just as vulnerable as the euro and any other fiat currency. People want hard assets that will maintain its value in any currency devaluation.
Better yet, the miners has showed signs of life. Many miners I mentioned in the past has broken out strongly and look to continue to rally in the months ahead despite a general market downturn. Look at EGO, ANV, SLW to name a few. The miners look a bit overbought at this point, but the next dip must be bought. This might be the last opportunity before gold takes out it's prior highs.
Here is some late breaking news that the Dept of Justice will investigate the silver mkt for alleged manipulation by JP Morgan. This will just add fuel to the fire. Click on link below to listen to the news.
http://www.kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2010/5/1_Ted_Butler_on_the_Metals_Market.html
I hope you are as prepared as I am to ride this bull mkt to new highs!! Woohoo!!
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