Fresh on his forecast for the bottom for the gold market, we saw another attempt to break the back of the gold price. It is said on KWN that the takedown was orchestrated by the FED. The mechanism was no different than the last takedown: an avalanche of paper sales at the worst possible time. The perps are not bothering to cover their tracks.
Larry's prognostication is right on for the predicted low between 1240 and 1310. His forecast for the next leg of the gold bull is to $5,000/oz and for the DOW to go beyond 25,000.
On the other side, Harry Dent of Boom and Bust forecasts gold to drop all the way to $750 and the DOW to drop to 3,500.
Who will be right?
We are having the Detroit default coming and perhaps California as well. Greece slipped a bit in stability (one coalition partner walked out), but the imminent threat of Eurochaos has diminished. Let's remember that the production cost of gold is nearing 1,300 so a gold price of $750 would shut down the miners. Wide scale sale of gold would complete the transfer from West to East and perhaps that is what the FED wants. Only time will tell.
Saturday, June 22, 2013
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