Jim’s Mailbox

Posted at 1:45 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

I see that you have been consistently putting out a "range" for the price of gold for 2012 of $1700 to $2100. This is a fairly tight range and not too much higher than where we are today. My question is, what will limit the upside in gold this year to $2100?

Thank you in advance.


CIGA Mike,

We are not stopping there permanently, but we will hit another temporary wall at $2111.

The run to full valuation, should it occur, will be to $4500 based on a perception that it has all hit the fan. Even $4500 might not be the high, but let us deal with things one step at a time.

That type of move takes but a few weeks and is the earmark of a top. I would like to take people a step at a time because I assure you $2111 will be the same as $1918 has been to us here before we touched $1535. Alf is looking for a 13% reaction twice on the way to $4500.

Is that clear? If not ask again.