Market Commentary From Monty Guild

Posted at 12:11 PM (CST) by & filed under Guild Investment.

Dear Friends,

The good news is that Monty and Tony are right. The bad news is that the cure will deliver a Weimar beyond Weimar within one year.

Gold is the only ultimate SAFE HAVEN. It will not be denied.

The option below is an international commitment to monetize all bankruptcies without limit while placing the entire world into a zero interest rate lock.

This is Weimar beyond Weimar.

This will make Gold the ultimate safe haven as currencies become impossible to define. This will swing gold wildly .

Manipulation of gold today, as you have seen a thousand times, will not do much.

Gold is headed to $1000 after this $900 dance, down slightly and then blast through $1000 on its way to $1200 and $1650.

The planetary killers are the OTC manufacturers, yet this QUADRILLION PLUS dollar problem is never properly defined. It never will be either.

I wager you that JP Morgan, who is collecting and being federally funded, will weather the storm by some miracle.

Eventually the Federal Reserve Gold Certificate Ratio, modernized and revitalized, fails miserably after everything else, including what is below.

Your friend,


The realization (as pointed out in the Financial Times article today entitled “Rising CDS Action Increases the Strain”) that the Lehman Brothers’ failure could create a Credit Default Swap (CDS) loss of $400 billion for counterparties is sinking into the market. This realization is leading to a continuing sell off in stocks worldwide.

It is just now dawning on people in the financial community that the two Icelandic banks failing this week makes a total of six CDS issuers who have failed in one month.  CDS buyers have no idea if they will get there money back or if their CDS’s are still in effect.  It will be a huge accounting mess, trying to decipher who owes what, and to whom.

I am more certain now, that my prediction of at least a mild depression will be correct.

The derivative mess is now coming unraveled.  The warnings were many, and some were wise enough to listen.  Belatedly, those who did not listen are starting to realize what is going on.

We can get rallies in stocks at any time.  On rallies, all financial companies are in danger of continued dilution from stock offerings, and government bailouts, where the governments take warrants and dilute existing shareholders.  Similar to the meltdown of the internet mania stocks, financial stocks will continue to fall…and many will disappear altogether.


It appears that things will continue to get uglier for quite some time.  In this environment, gold will have its “big day in the sun”.  Gold is already hitting all-time highs versus the Euro, British Pound, Australian and Canadian dollars, and many other currencies.


Financial Times