And here is Larry's latest.

I often refer to Larry Edelson. You might think that I question his conclusions, because I disagree with him. Actually, I have a lot of respect for his research; both in his cycle theory and his charting. Something seems to be wrong with his charting lately and that is somewhat troubling.

People who try to guess at what is coming in stocks and commodities have two tendencies: 1. they look at charts or 2. they look at economic data. The former are Chartists and the Latter are Fundamentalists. Most of us do both and I would characterize Larry as more a Chartist than I am. So, here are his forecasts and my critique of it.

1. The Bull Market in gold and silver remains intact;
2. He does not trust the recent breakout of gold and silver. Why? Because, while the FED action recently has been decisive, gold and silver prices have not reached record highs. FED action, however, has shortened the time to the day that the sovereign debt crisis hits the US.
3. He is cautious and urges clients to stay liquid for now.
4. He believes the Dollar will now rally and the Euro will drop, since the debt crisis is not resolved.

I agree with his conclusion #1. Gold and silver are in a bull market. I also agree re his look at QE3. It is a game changer. However, QE3 is a fake in that it is not designed to increase the circulating money supply. Its purpose is to inflate the Stock Market and the housing prices. Much of the money created will be sequestered, at least for now, by the methods I have described previously. It will become inflationary WHEN the banks will release capital into circulation. That will not happen untill O'Bungle is out of the WH.

Are we in the final phase of the gold Bull Market? Of course not. But, gold and silver have broken out and that's where I differ with Larry. He NOW feels that gold needs to close above 1,823 in order to confirm the breakout. Methinks he is moving the goal posts.

Larry also cites the rather mild reaction of gold to QE3, to wit, that we have not reached new highs in gold price.But, gold prices have not moved a lot, though they moved some and the printing is not yet under way.We saw the concerted move by various countries, so we know that those expectations were correct.  The US Dollar is moving up and the Euro is falling again. The EU is also going to  "SANITIZE" the newly created money and yes, that may delay the inflationary response to it.

My take is that gold has broken out of its correction, but it is early into the next phase. We have seen a temporary weakness, but gold is back up to 1777 now.