Gold fell to $880 today. This is the expected pull-back I spoke of in my last post, and the BUYING OPPORTUNITY that I also spoke about! Silver fell slightly ending the day at about $16, following gold’s lead, as it almost always does, but still remaining strong.
The DOW fell over 300 points today and is just above 12000 (down from its previous high of over 14000.) If anyone still has their money in stocks rather than gold and silver, then they are either brain dead, listening to the wrong people, or not paying attention. Gold and silver could still fall lower in the current pull-back or “correction,” but I don’t think that they are likely to pull back much if any, considering the DOW (more people are going to be scared out of stocks and putting their money into precious metals as a safe-haven.) We are dangerously close to the inevitable panic spike in gold and silver prices. (The one that people will be kicking themselves for missing.) I don’t know if the spike will occur this year, or the next, or the year after that. If I could make predictions like that then I would be rich. But rest assured that it will occur, and millions of people will be kicking themselves in the butt of missing it. Hind sight is 20/20. In the meantime, gold and silver prices will continue to climb.
I listened to Fed Chairman Ben Bernanke’s testimony before the Congressional Budget Sub-Committee today. He was obviously shaken and unsure of himself. He used the phrase “you know” at least a dozen times, indicating that he didn’t know what to say, which is not usual for him. He said that he is not expecting a recession in 2008. The man is obviously a liar because there is no doubt that we are already in a recession, and 2008 will most assuredly get worse. Ben is evil but he is no fool. He knows as well as anyone else that we are in a recession that is going to get much, much worse, but he is lying in order to try to maintain some confidence in the DOW and the U.S. dollar. He also warned Congress that they have to stop spending like a drunken sailor (my words, not his.) When a Congressman expressed some concerns about our nation’s 9 trillion dollar federal debt, Ben said that that was nothing compared to the federal debt that is off the record – specifying the unfunded liabilities (such as Medicare and Social Security.) IT DOESN’T TAKE A GENIUS TO READ BETWEEN THE LINES FOLKS!