My Dear Extended Family,
Please make an effort to stay balanced. Greed is a condition of lack of balance similar to fear. Fear is being fanned from within the gold community as much or more than from outside. When people who know gold is seriously under priced talk temporary bear, they kick good people when they are down. When I last discussed this with Dean Harry Schultz he made a great comment about the leading gold reviewers. Harry said "You cannot herd cats."
We can never make good discussions when we are out of balance. If I can be of any assistance it is to bring you back to balance as you review your situation. The market manipulators depend on being able to unbalance you and the greatest tool they have is to supply credit to the margin junkies who live on the edge of greed. This helps them flash to fear faster than the weather changes on Mt. Washington.
The continued strokes in the fiat money markets, regardless of where, is bullish for gold. The problems of OTC derivative just brought into the headlines by Morgan is alive and well, guaranteeing QE to infinity. It is possible that due to the genus quant’s, many of these weapons of mass financial destruction have taken on lives out of the control of their manufacturers. How long the Fed wants to stare down the markets is limited in time in a election year. QE is non-economic buying of US treasuries. They are bought to create a rate by government.
Austerity has exploded in the face of politics in the EU. That always results in changing politicians such as in France and Greece. The recovery in US economic statistics is running thin. That will cause more demand for liquidity especially in this election year as it is liquidity that floats all boats, especially the wishes of the want-to-again-be president.
The Fed has never failed a sitting administration in its history. The Fed is not going to fail the sitting administration in this election year. The assumed strength in the US dollar is a product only of the mirror image of weaker euro. The US dollar is not going to purchase more of anything US when currency induced cost push inflation is alive and well. The USDX is an antiquated index in its weights and measures.
You must make your decision in present time, neither fearful or greed-ful of the future. Look at every factor of gold and list them as bullish or bearish.
My decision is to forge ahead.
Sales of gold or gold shares should only occur when there is a clear and present need to pay bills with no other alternative. Your sales should not be made in the unbalanced fear of the bear raids fundamentally certain to fail in both gold shares as well as gold itself.