Forget October; the time to buy Gold & Silver is now.

Forget October; the time to buy Gold & Silver is now.

In a previous post I considered October to be a good time to purchase Precious Metals (PM’s). My thinking at the time was that the US Governments refusal to release information about future spending, and possibly more “Quantative Easing”, ‘Stimulus’ etc; indicated that another Trillion or so US Dollars are going to be dumped by Bens Helicopter.

Further evidence is the US Administration keeping the news ‘Black’, until after the next Election in November. The resignation of 2 of the 4 primary fiscal planners. Leaving us with the ‘Brilliant’ Larry Summers and equally amazing Timothy Gietner. (both of Goldman Sacs origin)

I thought October would be the ‘shorts’ last chance for stomping down the price and exit their positions, before whatever is in the Budget is known to the rest of us Peasants. It seems if they could have brought down the price this month they would have. It seems the upward pressure is too strong and waiting for a significant dip might not be a good idea.

Hence the possibility that the world might wake up in November and surmise that the United States was going to further dilute, or destroy the US Dollar. People desperate to find a way to preserve their wealth would look towards the Precious Metals market. September is upon us, market forces win out in the final analysis, and the manipulators have to eventually give way to the fundamentals.

I might be wrong and they have another shot to fire? If not, then the third leg of the upswing in prices would begin. The markets for both Silver & Gold are small. only a fraction of available investment cash would be needed to push prices up. Many analysts have predicted prices from $2500 to $10,000 ($US) a list of these can be found here.



Here in Australia we have to factor in the Currency situation, if our Dollar is weak then the price of Bullion & Coins is higher. Personally; if the Aussie is in a range of .88 to .91 that would be enough to remove it from the negative, to a positive in favor of purchasing now.

The other major factor is the time of the month, end of month Options Expiry has often been a time for the Short Seller / Market Manipulators to enter and crush the price down. They have succeeded in keeping bullion prices down for 40 years even longer if you go back past the decoupling of the USD from the Gold Standard in 1971.


Gold made a recent run up to $1240 USD and the best the manipulating gang could do was push both Gold & Silver down a very small fraction of percentage. To my thinking the combination of declining short positions by JP Morgan, and Goldman Sacs predicting higher prices, add the recent Housing Market figures pushing the Dow below 10,000; all point to the beginning of the end of the price suppression.

When a commodity like Gold has been artificially kept down for nearly a Century (A short history found here ) the movement of people from paper; Unallocated ETF’s like GLD & SLV and the probable 40:1 ration of paper to real Gold; the ingredients for a Bull Market are all in place. Gold at $1240 & Silver at $19.00 is going to look very cheap a year from now.

Hence, if you have been hesitating, waiting for a pullback it might happen, but, it will not be very much, the upside probability is so huge that even a $50 pullback will look trivial in the face of Gold at a conservative $1350 short term (Weeks to Months possibly after November Elections are over and the ‘Black’ Budget information is released) longer term $2500 to $3000.

To my thinking the Stock Market here or in any Western country is headed down. Green Shoots will be remembered as an optimist’s fantasy, wealth preservation is probably the most important issue for us all. Insurance for the future is a large enough percentage of your portfolio, invested in the only commodity that gives security. Even in a Deflationary environment should it occur here in Australia, Gold & Silver would at the very least; preserve your assets.

You insure your home, your car and your life. Precious Metals is at the least insurance of your wealth and they are not going to get any cheaper and our Dollar is probably not going to ascend past .91 at a very optimistic reading. Nor is it likely that a substantial pullback is going to happen. Time to get off the pot.