As markets never go anywhere in a straight line we have been licking our chops to explain to readers the small pull-back in silver and gold following a rally out of the summer consolidation period on new printing. Here is our projection for where we will head through early 2013 and why.
On July 17 veteran fund manager Marc Faber warned that investors “may lose up to 50 percent of their total wealth,” and said that “gold is oversold near-term” after observing two months of consolidation under the 1650 pivot point. For GoldSilver Insiders, Mike Maloney published videos at GoldSilver.com during the consolidation period, in which he said that “it is getting more bullish for gold and silver,” after commenting on the demoralized sentiment.
Citing little new web-based curiosity, Mike quipped that the “bull market hasn’t even gotten going yet,” despite gold’s actual rise ever since 1934, from twenty bucks an ounce to where we sit today.
Alternatively we could have said: “…despite the Fed’s dollar fall in purchasing power since 1934, from twenty bucks to buy an ounce of gold, all the way down to where we sit today.” In July, Mike said he “just does not think we have several months [more] before things start to move,” and that his preferred strategy was continuous diversification of savings into gold and silver.
Of course, as we know now, gold and silver prices did indeed rise above 1,700 dollars per ounce after the Federal Reserve (Fed) announced QEternity, pledging to print 40 billion new dollars a month without giving an end-date.