Wednesday, July 27, 2011

The Cat is Out of the Bag, Gold to Soar, Dollar to Crash

There is no functional hedge against the downgrade of US Treasuries that is sure to come with or without a default except gold.

The cat is out of the bag. The political opposition can back the present administration into a corner on the most important issue, debt.

If that is the case with debt, then what else could they do it with?

To assume there will be a default is extreme, however within a week we will know. There are those in the political opposition that might go to any length to cripple the present administration.

The only conclusion that I can come to is that you should NOT take your gold hedges off. At $1764 a runaway gold bull market becomes an exponential run away gold bull market.

After $1754 Alf and Armstrong become the predictors of note for Gold at $3000 to $12,500.

Respectfully,
Jim Sinclair of JSMineSet.com

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