28 December 2010

Gold Daily And Silver Weekly Charts

Silver powered higher almost one dollar and gold punched up through resistance at 1400 today.

First we have our long standing target of 1455, called out when gold was still trying to break out of its cup and handle formation. I can see gold to 1620 and silver to 40 before this leg of the bull has a serious correction UNLESS THERE IS A PANIC LIQUIDATION IN THE MARKETS.

Then everything will be sold in the short term, depending on what triggered the selloff. At some point there could be a significant divergence between gold and silver bullion and other dollar denominated financial instruments, and perhaps even other commodities that have less of a fungible 'monetary' element.

The commentary from the carnies on the financial networks today was funny.

The explanation for these rallies is fairly straightforward. Some of the central banks are debasing their currencies, and there is great pressure on many of the others to do the same.

The power of Bretton Woods II currency regime and the dollar banking cartel is this:
"In the famous simile of the cave, Plato compares men to prisoners in a cave who are bound and can look in only one direction. They have a fire behind them and see on a wall the shadows of themselves and of objects behind them. Since they see nothing but the shadows, they regard those shadows as real and are not aware of the objects.

Finally one of the prisoners escapes and comes from the cave into the light of the sun. For the first time, he sees real things and realizes that he had been deceived hitherto by the shadows. For the first time, he knows the truth and thinks only with sorrow of his long life in the darkness."

Werner Heisenberg, Physics and Philosophy

This generation has a rendezvous with destiny in which old questions and principles will be put to the test once again.