Precious metals are marching on.

Silver just hit a new high at 38 + change. It is flirting with 39 as I write this. Silver miner stocks are also hitting higher, though they lag behind previous highs. Finally, gold has begun to move and is heading to 1453, the magic number Larry says it must close above twice in a row to make the rally in gold credible. He further states that if gold does not correct to 1,250 then a correction in gold price might last two years.

I think I know what is going on. Larry uses a formula, a mathematical equation, that involves the current price of gold. And it figures into future price.

The last time my favorite guru was this wrong it was Joe Granville in the 80's. Joe developed a formula that allowed him to predict BUY/SELL signals and Joe told us to short the Market. I learned the hard way that no formula works all the time. In the 80's the wild card was the coming presidency of Ronald Reagan. People understood that the fumblings of Jimmy Carter would soon be over. Reagan was not in Joe's formula. This time, the wild card is Obama and the PM market knows the outcome. So, formulas that worked before, no longer work.