615. Gold rush in the end of the year (12/5/2009)

In early September, in #609, I predicted that "Feds is preparing another financial tsunami in the rest days of this year. ..... The price of the gold will go $1,500 to $2,000/ounce. The exchange rate of the Japanese yen will go 80/dollar or higher. The Euro will go 1.6 dollar/Euro or higher."

The gold price was around $1,000/oz at that time. It reaches $1,200/oz these days. Euro now is $1.5/Euro and yen is about 87/dollar.

The speculators gathered the gold at the price around $900/oz. To set the profit margin at $1,500/oz is natural. It can be reached in the rest days of this year. How high the gold price can go after the price passing over $1,500/oz? It depends on the situation how successfully the speculators unload the hot potatoes (high price gold) into the hands of public. At that time, notice the big topic in the media - war, inflation, article to praise the value of gold and report of the short supply of it.... It's the time the speculators retreating from the gold market.

Also I have talked about "China and India co-operate with the Feds." to push up the gold price in that September message. Seven weeks later, on November 3, the IMF sold the Central Bank of India 200 metric tons of gold at $1043/oz. The news helped the gold went over the strategic point of $1,100/oz easily and stood steady there. My perspection is once more proved correct.

As a matter of fact, it was the Feds which is the hand behind the stock market collapse of 2000 (dot.com bubble) and the housing bubble of 2007. As early as six years ago, I wrote "180. Beware of housing bubble (11/16/03)". In which I said, "anytime soon there will be a broken housing bubble, and a staggering economy following it." Anyhow, the Feds failed to eliminate me. So the housing bubble keept growing up until it explodes in 2007. We all see the staggering economy now.