Gold Daily and Silver Weekly Charts

Gold and Silver virtually hit our intermediate targets today. With gold at 1425 it is close enough to the forecast of 1455 we made at around 1150 to take some profits.

Therefore we took some of the short term positions off into the close and adjusted the hedges accordingly, leaving us slightly net short equities.

We do not touch our long term positions here as we are still far from the long term targets. We will hold bullion until the currency war is abating. To put this in perspective, that puts us in about round three of a fight that could easily go the twelve round distance.

Net Asset Value of Certain Precious Metal Trusts and Funds

SP 500 Deflated By Gold

The US stock market as deflated by gold has never really recovered from the financial crisis. This is a better reflection of the real economy in which unemployment and underemployment is running at the 17+% level.

The only progress we have seen in stocks is due to the monetary expansion of the Federal Reserve balance sheet. And most of that expansion has been channeled to the financial sector where it is being consumed by bad debts, enormous personal bonuses, and speculation.