Gold: the coming end of the correction (Larry has spoken).

There are many sayings on the Stock Market: 1. don't fight the FED, 2. Sell in May and go away, the Market always exaggerates, etc. Nowhere is the exaggeration more evident than in the case of the price of gold, silver, gold miner and silver miner stocks. I will give you one example. Impact silver (ISVLF or IPT.V) is a silver miner in Mexico owned by a Canadian outfit. It has no debts, is mining silver and has a book value of 90 cents per share. Its price? Fifty cents. Is this company heading for bankruptcy? Hardly. It was mining silver when the metal was selling for $8/ounce.

What in the world is going on? Can the price of gold and silver be manipulated by printing more paper currency? The answer to that is yes. But, will this insanity go on as writers suggest on Seeking Alpha? The answer to that is no. When will the insanity end?

My favorite prognosticator Larry Edelson wrote this on Jan 28 this year: "
 I will not turn bullish again on gold until either ...

A. Spot gold has closed above $1,823 an ounce on a weekly and monthly basis. Or ...

B. Gold cracks the $1,527 level and plunges to the $1,400 level, and even a tad lower.

Well, gold has dropped below 1,400 and in fact hit 1,320. Has Larry turned bullish? No. He said a few weeks earlier that the correction will end in Q2 of the year and his latest puts the end of the correction in the middle of July.

It is coming though. If we do drop to between 1,000 and 1,100 as Larry's reading of the entrails suggest, the ride up will be violent.