In a recent economic analysis piece featured by our friends at Gold-Eagle.com,
(http://www.gold-eagle.com/editorials_05/tustain120505.html),
Paul Tustain outlines just how bad the national debt situations is,
he compares
our situation to Argentina a few years ago, and he predicts
that Uncle Sam
will inflate his way out of the jam. My extrapolation of
Tustain's remarks--and from what I've read from many other analysts:
One likely end result will
be a dollar crisis and gold at perhaps $2,000+ per ounce. Meanwhile,
the expert "chartists" like Clive Maund (see: http://www.gold-eagle.com/editorials_05/maund120505.html)
tell us that in the recent
run-up past $510 per ounce, gold
has pushed so far above the 90 day moving average (90 DMA) so rapidly
that it is substantially overbought.
(See our free precious metals
tickers at the SurvivalBlog Investing page.) The chartists
predict
a temporary retracement--perhaps bringing gold to as low as $480 per
ounce before the bull resumes his charge. That dip might be a buying
opportunity for those of you that presently feel like you've missed
the boat. Maund says that any retracement in silver will be much smaller
and
shorter-lived. The silver bull, he says, will barely pause to catch
its breath. I've said it before and I'll say it again: I predict substantially
higher prices for gold and silver before the end of GWB's
second term.