Aden Sisters: Buy Gold NOW as it Corrects on its Way to $2,000

When you just consider the downgrade of U.S. debt, the jobs problem, the housing situation, the European bank concerns and their debt crisis, the negative outlook for the global economy, not to mention that the Fed will likely seek new measures to help the economy, we just don’t see gold coming down any time soon, other than having a normal downward correction [as currently is the case. Let us show you why.] Words: 1102

So say Mary Anne & Pamela Aden (www.adenforecast.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

The Adens go on to say:

$2000 or Bust

Gold moved into a stronger phase of the bull market in September 2009 and it hasn’t looked back since then. It broke clearly above $1000, and here we are approaching $2000, which [will be] another doubling of the price in two years [even though we are currently in a downward correction]. The volatility we’ve seen this month, with almost $200 fluctuations, is probably a sign of an intermediate top and now with the dollar starting to rise, while the other currencies decline… [the current correction in gold is to be expected]. Its leading indicators on Charts 1B and C are near overbought, which also reinforces this.

When to Buy; How to Buy

We receive letters asking if it’s too late to buy gold. We’ve taken the stance of buying gradually over the months to average in at a fair price…[but with the current] correction, don’t think much about it and buy with both hands. Keep in mind, gold will remain strong even if it falls to the $1650 level. If it closes below this level, [however.] a steeper decline could take it to $1420, its major support. Currently, volatility reigns and overshoots could also easily happen.

Silver and Gold Shares

Since silver and gold shares have not been on a tear like gold has, they’re not overbought. They were also pressured by the falling stock market and concerns of the slowing global economy but, as Charts 2 and 3 [below] show, they have room to rise further.

First, note that silver is holding firmly near the higher side while its intermediate leading indicator bounces up from the lows. This means that silver has room to rise further. It’s strong above $38.50 and the major trend is up above $30.50.

As for gold shares, the XAU index is near the highs as it follows the gold price. Gold shares also have room to rise further since the leading indicator is still coming up from a low area. As for silver shares, they’re not bouncing up as much as gold shares, but we think it’s just a matter of time until they follow.